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Question - A company's net income for financial statement purposes is $300,000. Included in this amount are the following: a $40,000 gain from the sale of Class 8 equipment for $60,000 that had an original cost of $330,000, and a net book value of $20,000; amortization expense of $25,000; and client entertainment expenses of $13,000. The undepreciated capital cost (UCC) of Class 8 at the beginning of the year was $8,000. The capital cost allowance (CCA) computed on all other depreciable assets was $7,500. What is the net income for tax purposes?
a) $336,000
b) $284,000
c) $290,500
d) $324,000
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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