If a Company Buys a Machine for $10,000 Cash and Plans

Multiple Choice

If a company buys a machine for $10,000 cash and plans to depreciate it at $1,000 per year for 10 years, the two most important aspects of this transaction to the finance manager (as opposed to the accountant) are:

A) the purchase of the machine and the tax savings from the depreciation expense.
B) recording the purchase of the machine and its depreciation expense.
C) calculating depreciation expense and its compliance with the tax code.
D) the impact on factory capacity due to the equipment purchase.