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Perfect Accruals Inc., purchased an asset five years ago for a cost of $950,000. The asset has a CCA rate of 30%. The company is selling this asset for 20% of its original cost. By what amount should the UCC in the asset class be reduced by, if the accelerated investment incentive method is used? Multiple Choice $276,972 $64,548 $190,000 $125,452 $53,765

Perfect Accruals Inc., purchased an asset five years ago for a cost of $950,000. The asset has a CCA rate of 30%. The company is selling this asset for 20% of its original cost. By what amount should the UCC in the asset class be reduced by, if the accelerated investment incentive method is used? Multiple Choice $276,972 $64,548 $190,000 $125,452 $53,765

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter9: Capital Budgeting And Cash Flow Analysis
Section: Chapter Questions
Problem 14P
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Perfect Accruals Inc., purchased an asset five years ago for a cost of $950,000. The asset has a CCA rate of 30%. The company is selling this asset for 20% of its original cost. By what amount should the UCC in the asset class be reduced by, if the accelerated investment incentive method is used? Multiple Choice $276,972 $64,548 $190,000 $125,452 $53,765
Transcribed Image Text:Perfect Accruals Inc., purchased an asset five years ago for a cost of $950,000. The asset has a CCA rate of 30%. The company is selling this asset for 20% of its original cost. By what amount should the UCC in the asset class be reduced by, if the accelerated investment incentive method is used? Multiple Choice $276,972 $64,548 $190,000 $125,452 $53,765
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