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Blockbuster Is a Video Rental and Retail Chain

Question 62

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Blockbuster is a video rental and retail chain.Blockbuster is forecasting its financial statements for Year 3.Selected financial information for Years 1 and 2 is provided in the table.In Year 3 Blockbuster is planning to invest $400,000 thousand in CAPEX.The average depreciation rate is 25%.What is the forecasted depreciation expense in Year 3?
Selected Financial Information
Blockbuster Inc.($ '000)
Blockbuster is a video rental and retail chain.Blockbuster is forecasting its financial statements for Year 3.Selected financial information for Years 1 and 2 is provided in the table.In Year 3 Blockbuster is planning to invest $400,000 thousand in CAPEX.The average depreciation rate is 25%.What is the forecasted depreciation expense in Year 3? Selected Financial Information Blockbuster Inc.($ '000)    A)  $207,175 B)  $270,256 C)  $329,750 D)  $314,526 E)  $455,300


A) $207,175
B) $270,256
C) $329,750
D) $314,526
E) $455,300

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