Boxer Corporation buys equipment in January of the current year with a seven-year class life for $15,000. The corporation expensed the $15,000 under Sec. 179. The deduction in the year of purchase for E&P purposes due to the acquisition and expensing of the equipment is
A) $1,500.
B) $3,000.
C) $14,000.
D) $15,000.
B) $3,000.
Property expensed under Sec. 179 is expensed ratably using the straight-line method over five years, commencing with the month in which it is deductible for Sec. 179 purposes when computing E&P regardless of the number of years in its class life.
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Shank Corporation uses a different depreciation method for its income tax return than it does for its income statement. Consequently, the corporation has a credit balance in its Deferred Income Taxes account. This balance should be classified as a
a. current asset. b. long-term liability. c. current liability. d. long-term asset.
From Southeast Asia, Tai Ltd. exports genuine trademarked goods to the United States. Tai also makes labels and packaging bearing another firm's trademark, ships the labels to another location, and then affixes them to an inferior product to deceive buyers. Tai sells these goods to retailers who are unaware that the marks are counterfeit. Under the Stop Counterfeiting in Manufactured Goods Act,
it is a crime to a. import genuine trademarked goods. b. traffic in counterfeit labels, stickers, and packaging. c. sell counterfeit versions of brand-name products in foreign countries. d. unknowingly use a counterfeit mark on goods.
The government needs a subpoena or a warrant to inspect an employer's file of I-9 forms.
Answer the following statement true (T) or false (F)
What is the future value of a series of $5,000 end-of-the-year cash flows to be received forever if the required rate of return is 6.00% per year and the first cash flow is one year from today?
A) $83,333,333.33 B) $8,333,333.33 C) $83,333.33 D) This question cannot be solved for a future value.