Thank you for visiting 1 20 points Ten years ago Johnson Recovery purchased a wrecker for 330 000 to move disabled 18 wheelers He received a salvage value of. This page is designed to guide you through key points and clear explanations related to the topic at hand. We aim to make your learning experience smooth, insightful, and informative. Dive in and discover the answers you're looking for!
Answer :
No, the annual equivalent value of the benefits exceeds the capital recovery cost at an interest rate of 12% because the salvage value of $25, 000 is less than the requirements.
A capital cost recovery rate that is higher than 100% indicates that businesses may be able to write off more than the entire cost of an investment. A lower capital cost recovery rate raises the cost of capital investment while also overstating a company's taxable income and tax liability.
When a company sells its assets and liquidates them to recoup the money it spent on machinery and equipment, it is another example of capital recovery. The concept of capital recovery might be helpful to a firm when determining what fixed assets to purchase.
To learn more about Capital recovery visit: https://brainly.com/question/24297218
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