Question
A Canadian-controlled and private mail-order computer company in Truro, Nova Scotia, sells computer supplies and peripherals. The company leased showroom space and a warehouse for
A Canadian-controlled and private mail-order computer company in Truro, Nova Scotia, sells computer supplies and peripherals. The company leased showroom space and a warehouse for $30,000 a year and installed $120,000 worth of inventory checking and packaging equipment. The CCA rate for this investment is 30%. The life span of the project is 5 years. The salvage value is $$15,000. The MARR is 12%. The store was completed and operations began on January 1. The company had a gross income of $1,500,000 annually. Annual supplies and all operating expenses other than the lease expense were itemized as follows:
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