Reference no: EM132679301

Problem 1) A project will increase revenue from $1.9 million to $2.6 million. Wages are 50% of revenue. Maintenance on the machine will be $25,000 less than it is on the machine that will be replaced.

What is the incremental revenue that will result from accepting this project?

Select one:

a. $0.325 million

b. $0.375 million

c. $0.700 million

d. $0.350 million

Problem 2) A machine with a purchase price of $11,000 is to be depreciated over its useful working life of 6 years to a book value of zero, using straight-line depreciation.

What is the book value of the machine after 3 years?

Select one:

a. $5400

b. $11000

c. $5500

d. $10900

Problem 3) A machine with a purchase price of $6,000 is to be depreciated over its useful working life of 10 years to a book value of zero, using diminishing value depreciation.

What is the amount of depreciation in Year 1?

Select one:

a. $1200

b. $1100

c. $600

d. $300