Suppose a Machine That Costs $80,000 Has a Useful Life

question 44

Multiple Choice

Suppose a machine that costs $80,000 has a useful life of ten years.Also suppose that capital cost allowance (CCA) deduction on the machine is $8,000 in year 4.The tax rate is 40%.What would be the tax savings from the CCA tax shield in year 4?

• A) $4,800 outflow.
• B) $3,200 outflow.
• C) $3,200 inflow.
• D) $4,800 inflow.

Understand the impact of leadership styles on group dynamics and organizational outcomes.

Understand the concept of power dynamics in organizational and social contexts.

Identify the factors contributing to job satisfaction and employee motivation.

Recognize the impact of leadership styles on organizational behavior and employee performance.

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Definitions:

Goods Purchased

The total value or volume of raw materials, components, or finished products acquired by a business for resale or production.

Production Budget

A detailed plan showing the number of units that must be produced during a period in order to satisfy both sales and inventory needs.

Ending Inventory

The value of goods available for sale at the end of an accounting period.

Units

A measurement of quantity representing how many pieces, items, or parts are considered in transactions, production, or inventory counts.