Machinery Might Be Depreciated Over 10 Years Because

question 77

Multiple Choice

Machinery might be depreciated over 10 years because

• A) it will lose most of its market value in 10 years.
• B) it will be paid for in 10 years.
• C) it will help to generate revenue for the company over 10 years.
• D) income tax provisions require depreciation over 10 years.

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Definitions:

Market Risk Factor

Elements or variables that affect the performance of investments in the stock market, such as economic developments or changes in interest rates.

Common Stock

A form of corporate equity ownership, representing a share in the ownership of a company and a claim on a part of its profits.

Treasury Bills

Treasury bills are short-term government securities issued at a discount from the face value and mature at par, used by governments to raise funds to meet short-term financial needs.