Question
Ultra-Corporation purchased an equipment costing $300,000. The expected after-tax net income of $9,000 each year. It is predicted that the machine is expected to have
Ultra-Corporation purchased an equipment costing $300,000. The expected after-tax net income of $9,000 each year. It is predicted that the machine is expected to have a 12-year service life and a residual value $60,000. Company uses straight-line depreciation. Compute this machine's accounting rate of return?
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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094
