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? Show all calculation and formulas if necessary: Multiple Choice   $190,000   $285,000   $83,092   $200,000   $193,881

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter9: Capital Budgeting And Cash Flow Analysis
Section: Chapter Questions
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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?

Show all calculation and formulas if necessary:

Multiple Choice
  •  

    $190,000

  •  

    $285,000

  •  

    $83,092

  •  

    $200,000

  •  

    $193,881

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