Taylor and King,CPAs installed a new computer system.When the needs of the various divisions were analyzed,it was determined that the Audit Division would require 40% of the capacity,the Tax Division would require 25% of the capacity,and the Business Consulting Division would require 35% of the capacity.The computer system will cost $240,000. How much of the computer system's cost will be allocated to the Tax Division?

Question

Quizplus · Accepted Answer

To find the amount of the computer system's cost that will be allocated to the Tax Division, we need to first calculate how much of the capacity of the system the Tax Division will use.

Tax Division's capacity requirements = 25% of total capacity 
= 25/100 x $240,000 
= $60,000

Therefore, $60,000 of the computer system's cost will be allocated to the Tax Division.

Taylor and King,CPAs Installed a New Computer System