For Income Tax Purposes, If the NRV of Inventory at Year

question 98

Multiple Choice

For income tax purposes, if the NRV of inventory at year end is lower than cost, the company is permitted:

• A)a change in method which lowers the cost to less than the NRV.
• B)a tax deductible expense for the amount of the loss.
• C)a deferral of tax for the amount of the gain.
• D)to use the specific identification method.

Recognize different types of utility functions and their implications for consumer choice.

Apply the concept of perfect substitutes and complements in consumer's choice theory.

Understand the impact of income changes on the quantity demanded of goods.

Interpret the implications of specific utility functions (e.g., min, max) on consumption decisions.