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question 71

Multiple Choice

[The following information applies to the questions displayed below.]
The Terme Corporation is contemplating the purchase of new equipment,which may potentially increase revenues by 25%.Currently,sales are $750,000 per year and variable costs are 55% of sales.The equipment is expected to last for 5 years with no residual value.The cash outflow expected at the beginning of the year is $ 357,500.
-What is the amount of depreciation deduction the company could expense annually assuming the straight-line depreciation method is used?

• A)$75,000
• B)$41,250
• C)$71,500
• D)$30,250

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Items or services bought from another country, often involving importation and subject to international trade policies and currency exchange rates.

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Tangible products that satisfy human wants (goods) and intangible activities or benefits that are offered (services).

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Goods and services sold to other countries.