Famous Danish Corp

question 40

Multiple Choice

Famous Danish Corp. is replacing an old cookie cutter with a new one. The cookie cutter is being sold for $25,000 and it has a net book value of $75,000. Assume that Famous Danish is in the 34% income tax bracket. How much will Famous Danish net from the sale?

• A) $61,000
• B) $55,000
• C) $75,000
• D) $42,000

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Definitions:

Mantle Upwelling

The process where hotter and more buoyant material rises towards the Earth's surface from the mantle, often affecting tectonic activity.

Continental Rift

A continental rift is a linear zone where the Earth's crust and lithosphere are being pulled apart, often leading to the formation of a new ocean basin.

Andes

A major mountain range in South America that extends over 7,000 km, known for its volcanic activity and diverse ecosystems.

Continental Shelf

The extended perimeter of each continent, lying relatively shallow in the ocean, where the seabed is at a gentle slope before a steep drop off to the ocean floor.