The City of Granby, Colorado Recently Enacted a 1

question 71

Multiple Choice

The city of Granby, Colorado recently enacted a 1.5% surcharge on vacation cabin rentals that will help pay for the city's new elementary school. This surcharge is an example of ________.

• A) A government fine
• B) A sin tax to discourage undesirable behavior and An earmarked tax
• C) An earmarked tax
• D) A sin tax to discourage undesirable behavior
• E) None of the choices are correct

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Definitions:

Intangible Asset

An asset that lacks physical substance, such as copyrights, trademarks, patents, and goodwill.

Amortization

Amortization refers to the process of gradually writing off the initial cost of an intangible asset over its useful life, reflecting its consumption or decline in value.

Accumulated Depreciation

The total amount of depreciation that has been recorded for an asset since it was put into use, reducing its book value on the balance sheet.

Trade-in Allowance

The amount credited to the buyer by the seller for a traded-in asset toward the purchase of a new asset.