The shape of the short-run aggregate supply curve is: a. horizontal, because wages adjust at the same rate as the price level.
b. vertical, because wages adjust at the same rate as the price level.
c. upsloping, because wages adjust more rapidly than the price level.
d. upsloping, because wages adjust more slowly than the price level.

$86,513

Explanation:

The question deals with depreciation of fixed assets (dozer)  

The formula for time value method of depreciation of fixed assets = (C − S)/N, where

C = cost of asset

S = scrap value of asset

N = number of economic useful years of assets

Total of cost of fixed assets (dozer):                       $

Cost on delivery                                                 275,000

Add cost of capital (9.2% x $275,000)               25,300

       Tax (33% x $275,000)                                  90,750

       Property taxes, insurance, and storage

       cost (4% x $275,000)                                     11,000

       Ownership cost                                          402,050

Therefore cost of asset C = $402,050

Scrap value S = $56,000

Economic useful life of asset = 4yrs

Using (C − S)/N

Amount of depreciation charged = (402,050 − 56,000)/4

= 346,050/4

= $86,513

Time value depreciation charged on ownership cost is $86,513