When using an ABC inventory, A items are those 75 percent of the items that make up 5 to 10

Western Inc. purchases a machine for $15,000. This machine qualifies as a five-year recovery asset under MACRS with the fixed depreciation percentages as follows: year 1 = 20.00%; year 2 = 32.00%; year 3 = 19.20%; year 4 = 11.52%

Western has a tax rate of 33%. If the machine is sold at the end of four years for $4,000, what is the cash flow from disposal? A) $3,535.36 B) $3,408.22 C) $2,592.00 D) $1,408.00

Rights are call options issued to current owners of the stock and normally expire within a short period of time

Indicate whether the statement is true or false.