AACE International Certified Cost Professional (CCP) Exam CCP Question # 34 Topic 4 Discussion

AACE International Certified Cost Professional (CCP) Exam CCP Question # 34 Topic 4 Discussion

CCP Exam Topic 4 Question 34 Discussion:
Question #: 34
Topic #: 4

An agricultural corporation that paid 53% in income tax wanted to build a grain elevator designed to last twenty-five (25) years at a cost of $80,000 with no salvage value. Annual income generated would be $22,500 and annual expenditures were to be $12,000.

Answer the question using a straight line depreciation and a 10% interest rate.

You have been asked to provide ETC information to management. Based on the following information, what is the ETC?

Original Budget = $9,000,000

Actuals to date = $3,513,000

Current estimate at completion = $10,613,000

Actuals for current month = $1,200,000


A.

$10,613,000


B.

$9,000,000


C.

$5,487,000


D.

$7,100,000


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