Why would a taxpayer elect to use the alternative depreciation system rather than the MACRS rules?
What will be an ideal response?
Use of the alternative depreciation system would be preferred if the taxpayer anticipates losses over the next few years, has substantial business credit carryovers or is in an unusually low tax bracket in the current year. Use of alternative depreciation would result in lower depreciation charges when the marginal tax rate is lower than expected in future years. With the election of the alternative depreciation system, the tax savings from the depreciation deductions in the higher marginal tax rate year will be increased.
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Nordstrom department stores, which are well known for exceptional customer service, uses:
A) an elaborate system to provide employees answers on how to handle any customer situation. B) a single 5 x 8" card containing 75 words as its guide to employee behavior. C) a well-detailed employee handbook. D) a simple phrase, "treat the customer like a king" as its major guideline.
Which of the following is the key group in Moonitz’s set of postulates?
a. The Environmental group b. The Imperatives c. The Economic group d. Postulates stemming from accounting itself
What were the cases that led to corporate political speech being considered protected speech?
What will be an ideal response?
The viewpoint that low dividends increase stock value is based on which of the following
principles? A) the agency problem B) risk-return trade-off C) taxes bias business decisions D) time value of money