Manti Company Purchased a New Machine on January 2, Year

question 132

Multiple Choice

Manti Company purchased a new machine on January 2, Year 1. Cost and other data relating to the machine follow:
$\begin{array}{|l|r|}\hline \text { Cost of Machine } & \$ 140,000 \\\hline \text { Salvage Value } & \$ 20,000 \\\hline \text { Useful Life } & 12 \text { years } \\\hline\end{array}$
The machine is in Class 7 with a maximum $15 \%$ CCA rate. Manti uses an after-tax discount rate of $12 \%$ for capital budgeting decisions. The income tax rate is $40 \%$ .
- If Manti deducts the maximum CCA for tax purposes,what will be the approximate present value (as of January 2,Year 1) of the CCA tax shield for Year 2?(Do not round your intermediate calculations.)

• A) $6,194.
• B) $7,700.
• C) $9,291.
• D) $19,425.

Understand correlation and its role in exploring relationships between variables.

Grasp the principles of the normal distribution curve and standard deviation.

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

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

---

Definitions:

Parking Lot

An area designated for the parking of vehicles.

Paving

The process of covering a surface or area with pavement, typically using materials like asphalt or concrete, to create a hard, durable surface for vehicles or foot traffic.

Demolish Old Building

The process of tearing down or destroying an outdated or dilapidated building, often to clear the site for new construction or uses.

Construction

The process of building or assembling infrastructure, buildings, or other substantial physical structures.