A Corporation Has Decided to Replace an Existing Asset with a Newer

question 25

Multiple Choice

A corporation has decided to replace an existing asset with a newer model. Two years ago, the existing asset originally cost $70,000 and was being depreciated under MACRS using a five-year recovery period. The existing asset can be sold for $30,000. The new asset will cost $80,000 and will also be depreciated under MACRS using a five-year recovery period. If the assumed tax rate is 40 percent on ordinary income and capital gains, the initial investment is ________.

• A) $48,560
• B) $44,360
• C) $49,240
• D) $27,600

Understand the concept of correlation and its types (positive, negative, and zero).

Learn the principles of distribution, including the normal curve and standard deviation.

Identify measures of central tendency (mean, median, and mode) and measures of variability (range, variance, and standard deviation).

Comprehend the significance of scatterplots in visualizing data and correlation between variables.

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Definitions:

High-Performance Work System

A set of management practices designed to enhance organizational performance by maximizing the effectiveness of human resources.

Organizational Structure

The system that outlines how activities are directed in order to achieve the goals of an organization, including rules, roles, and responsibilities.

Technology

The application of scientific knowledge for practical purposes, especially in industry and improvements in tools, machines, systems, and devices.

Organizational Structure

The way in which an organization arranges its hierarchy, roles, and responsibilities to achieve its objectives.