The Client Is a Corporation Which Uses High-Tech Equipment to Manufacture

question 15

Multiple Choice

The client is a corporation which uses high-tech equipment to manufacture its product.Because of the high level of wear and tear due to long production runs and frequent technology changes,the client usually replaces the equipment every two years.According to IRS guidance,the MACRS life of the equipment is five years.In order to accelerate depreciation deductions,which tax depreciation option should the client elect?

• A)alternative depreciation system (ADS)
• B)regular MACRS treatment
• C)MACRS with a straight-line election
• D)units-of-production method

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Definitions:

Unemployment

The state of being without a job despite actively looking for work.

Downward-sloping

A term used to describe a graphical representation where a line or curve moves lower as it travels from left to right, indicating a negative relationship between two variables.

Efficiency Wage Model

An economic theory suggesting that higher wages might lead to increased productivity by attracting better employees and increasing worker motivation.

Electronic Devices

Gadgets like smartphones, laptops, and tablets that operate on electrical power and digital information.