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The CCP Certification Exam is one of the most comprehensive examinations in the field of cost engineering. CCP exam consists of two parts: a written exam and a peer review process. The written exam covers a wide range of topics such as cost estimating, scheduling, cost accounting, risk management, and quality control. The peer review process is designed to evaluate the practical application of the candidate's knowledge of cost engineering through real-world case studies.
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NEW QUESTION # 170
A used concrete pumping truck can be purchased for $125,000. The operation costs are expected to be $65,000 the first year and increase 5% each year thereafter. As a result of the purchase, the company will see an increase in income of $100,000 the first year and 5% more each subsequent year. The company uses straight-line depreciation. The truck will have a useful life of five (5) years and no salvage value. Management would like to see a 10% return on any investment. The company's tax rate is 28%.
The taxable income in year number 5 is:
Answer: C
Explanation:
To calculate the taxable income in the fifth year:
Income in year 5:
Year 1 income=100,000×1.054≈121,551 ext{Year 1 income} = 100,000 imes 1.05
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