Galaxy Corporation Purchases Specialty Software from a Software Development Firm

question 73

Multiple Choice

Galaxy Corporation purchases specialty software from a software development firm for use in its business as of January 1 of the current year at a cost of $90,000.No hardware was acquired.How much of the cost can Galaxy deduct this year?

• A)$18,000
• B)$15,000
• C)$30,000
• D)$90,000

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Definitions:

Agent

A person authorized to act on behalf of another person, typically in a business or legal matter.

Negotiable

A term denoting something that can be transferred or assigned from one party to another, typically referring to financial instruments or goods.

Purpose

The reason for which something is done or created, or for which something exists.

Transferred

The act of moving or passing something from one person, place, or entity to another.