The Act of 2017 Has Multiple Provisions; the Following Are

question 57

Multiple Choice

The Act of 2017 has multiple provisions; the following are likely of the most significant to all U.S. companies EXCEPT:

• A) U.S. corporate income tax rate is reduced to 21%.
• B) Limits the net interest deductions.
• C) Allows companies to deduct the entire cost of equipment purchases from their taxable income.
• D) all of the above

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Definitions:

Profit and Loss Sharing

A financial arrangement where profits and losses are distributed among partners or stakeholders proportionally to their contributions or shares.

Capital Accounts

Accounts that reflect the equity or ownership interest of shareholders or partners in a company or partnership, including contributed capital and retained earnings.

Liquidation Expenses

Costs associated with closing down a business, including selling assets, paying off creditors, and distributing any remaining assets to shareholders.

Cash Balance

The amount of cash a company holds in its accounts at a given time.