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:

Earthquake Detectors

Devices or systems designed to detect and provide early warnings of seismic activity, potentially saving lives and reducing damage.

Production Function

An equation that specifies the output of a firm, an industry, or an entire economy for all combinations of inputs.

Total Cost

The complete cost of production, combining both fixed and variable costs.

Units of Output

measure the quantity of goods or services produced by a firm or industry.