A Machine Costing $100,000 Has a Useful Lifetime of 15

question 1

Multiple Choice

A machine costing $100,000 has a useful lifetime of 15 years with an estimated scrap value of $10,000.What is the book value of the machine at the end of the third year under the constant percentage method of depreciation? (Answer to the nearest dollar)

• A)$63,096
• B)$63,163
• C)$63,606
• D)$73,564

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Definitions:

Supply Curves

Graphical representations showing the relationship between the price of a good and the quantity of that good that suppliers are willing to provide.

Tax Revenue

The earnings obtained by governments from tax collection.

Consumer Surplus

The contrast between what consumers intend to pay for an item or service and the real cost they bear.

Producer Surplus

The gap between the price producers are prepared to take for a product and the price they end up getting.