Research reported in the Harvard Business Review indicates that it is very difficult to build customer loyalty if a firm is selling only the ________ product

Debentures are backed only by the goodwill of the bond issuer

Indicate whether the statement is true or false

Eastern Inc. purchases a machine for $70,000. 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%

The firm has a tax rate of 40%. If the machine is sold at the end of two years for $50,000, what is the cash flow from disposal? A) $50,000 B) $43,440 C) $39,875 D) $33,600