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A company buys a machine for $76,000 that has an expected life of 6 years and no salvage value. The company anticipates a yearly after tax net income of $1,805. What is the accounting rate of return?
Capital Balances
Capital balances indicate the amount of equity a partner or shareholder has in a business, reflecting the net contributions and withdrawals, plus their share of profits or losses.
Income and Losses
Income and losses refer to the financial results of a company's operations, with income indicating profit and losses indicating expenses exceeding revenues.
Capital Interest
The portion of an investment or interest in a partnership that represents the owner's or partner's share of the capital.
Partnership Interest
The share or portion that a partner owns in a partnership, including rights to profits and decision making.
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