No tax credit was given under the Making Work Pay program

Mather Company purchased equipment on January 1, 2010 at a total invoice cost of $224,000; additional costs of $4000 for freight and $20,000 for installation were incurred. The equipment has an estimated salvage value of $8000 and an estimated useful life of five years. The amount of accumulated depreciation at December 31, 2011 if the straight-line method of depreciation is used is:

A. $86,400 B. $88,000 C. $96,000 D. $99,000

Based on Exhibits A and B, what debt-to-total capital ratio would minimize MBG’s weighted average cost of capital?

A. 20%. B. 30%. C. 40%.