At the Start of Year 1, DEF Inc

question 143

Multiple Choice

At the start of Year 1, DEF Inc. has a UCC balance of $100. During Year 1, the company acquired assets in the amount of $50 and disposed of assets with an undepreciated value of $25 for $20. The pool qualifies as Class 8 assets (20% CCA) . The remaining balance in the asset pool at the end of Year 1 as a result of the above information would be:

• A) $100.
• B) $105.
• C) $95.
• D) $110.

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Definitions:

AVC

Average Variable Cost, which is the total variable costs (costs that change with the level of output) divided by the quantity of output produced.

Shut Down

The temporary or permanent cessation of operations, often referring to business closure due to economic events or strategic decisions.

Purely Competitive Seller

Describes a market situation where a large number of sellers offer identical products, and no single seller can influence the market price.

Product Price

The amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefits of having or using the product or service.