On October 2,2013,Andres Corporation (A Calendar Year Corporation)purchases and Places

question 38

Multiple Choice

On October 2,2013,Andres Corporation (a calendar year corporation) purchases and places into service new 7-year business equipment costing $35,000.No other acquisitions are made during the year.If Section 179 expensing is not elected,the maximum cost recovery for 2013 is:

• A)$1,250
• B)$5,002
• C)$7,000
• D)$18,125
• E)$35,000

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Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers, typically downward sloping.

Perfectly Competitive Markets

Markets in which no individual producer or consumer has the market power to influence prices, characterized by many buyers and sellers, homogeneous products, and free entry and exit.

Economic Profits

The difference between a firm's total revenue and its total costs, including both explicit and implicit costs, measuring the excess over the opportunity cost of capital.

Free Entry

A market condition where firms can freely enter or exit the market without facing significant barriers to entry or exit.