During 2016 and 2017,Danny Pays Property Taxes of $3,500 Each

question 15

Multiple Choice

During 2016 and 2017,Danny pays property taxes of $3,500 each year on a piece of land.During 2016,the land is vacant and unproductive.In 2017,Danny uses the land as a parking lot and generates $16,000 in income.Which of the following is true regarding the property taxes?

• A)Capitalize $3,500 each year.
• B)Deduct $3,500 each year.
• C)Capitalize $3,500 in 2016 and deduct $3,500 in 2017.
• D)Either B or C is acceptable.

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Definitions:

Team Selling

A sales strategy where multiple individuals within an organization work together to close sales and manage client accounts, leveraging the diverse skills of the team.

Major Customers

The most important or significant clients to a business, usually accounting for a large portion of the company's revenue.

Servicing

The process of maintaining or repairing a product or fulfilling the terms of a service agreement.

Personal Selling Process

Sales activities occurring before, during, and after the sale itself, consisting of six stages: (1) prospecting, (2) preapproach, (3) approach, (4) presentation, (5) close, and (6) follow-up.