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22. Which one of the following will decrease net working capital of a firm? Difficulty level: EasyTopic: Net Working Capital23. Net working capital: Difficulty level: EasyTopic: Net Working Capital
Chapter 08 - Making Capital Investment Decisions24. A company which uses the MACRS system of depreciation: Difficulty level: EasyTopic: MACRS25. Better Built Toys just purchased some MACRS 5-year property at a cost of $230,000. Which of the following will correctly give you the book value of this equipment at the end of year 2?MACRS 5-year propertyYearRate1 20.00%2 32.00%3 19.20%4 11.52%5 11.52%6 5.76%I. 52% of the asset costII. 48% of the asset costIII. 68% of 80% of the asset costIV. the asset cost, minus 20% of the asset cost, minus 32% of 80% of the asset cost Difficulty level: EasyTopic: MACRS
Chapter 08 - Making Capital Investment Decisions26. Will Do, Inc. just purchased some equipment at a cost of $650,000. What is the proper methodology for computing the depreciation expense for year 3 if the equipment is classified as 5-year property for MACRS?MACRS 5-year property YearRate1 20.00%2 32.00%3 19.20%4 11.52%5 11.52%6 5.76% Difficulty level: MediumTopic: MACRS27. The book value of an asset is primarily used to compute the: Difficulty level: EasyTopic: Book Value