A Firm Is Considering the Purchase of a New Machine

question 3

Multiple Choice

A firm is considering the purchase of a new machine for $325,000. The firm is unsure if it should use the 3-Year MACRS schedule or straight-line depreciation over three years. What is the difference in the book value after three years if the firm uses MACRS instead of straight-line depreciation?

• A)$0
• B)$24,083
• C)$48,166
• D)$300,918

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Definitions:

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, suggesting that people are motivated to fulfill basic needs before moving on to other needs, culminating in self-actualization.

Avoidance Motivation

A psychological behavior aimed at avoiding unpleasant outcomes, tasks, or situations, often driven by fear or anxiety about potential negative consequences.

Safety And Security

The state of being protected from harm or other non-desirable outcomes. It encompasses both physical safety and psychological security.

Property

Legally recognized rights and interests in objects, land, or intellectual creations, signifying ownership or possession.