A Machine Costs $3 Million and Has Zero Salvage Value

question 22

Multiple Choice

A machine costs $3 million and has zero salvage value.The machine qualifies under the 3-year MARCS category.Assume a discount rate of 10% and a 40% tax rate.What is the present value of depreciation tax savings associated with this machine? (MARCS tax depreciation schedule of a 3-year class asset: 33.33% in year 1,44.45% in year 2,14.81% in year 3,and 7.41% in year 4)

• A) $1,090,900
• B) $1,200,000
• C) $994,741
• D) $998,684

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Definitions:

War Against The Poor

A concept describing systematic policies, practices, or attitudes perceived to disadvantage and target individuals or groups in lower socioeconomic classes.

Poverty

A state of financial insufficiency where individuals or groups cannot meet their basic needs for food, shelter, and health care.

Myths

Traditional stories or legends typically involving supernatural beings or events, which serve to explain natural or social phenomena, or cultural beliefs and values.

Functional Theory

A sociological perspective emphasizing the roles that different aspects or institutions of society fulfill to maintain social order.