N Purchased a Camera for Use in His Photography Business

question 34

Multiple Choice

N purchased a camera for use in his photography business for $1,200.Depreciation of $624 was allowed as a business deduction before the camera was sold.Which of the following is not true?

• A)If the camera is sold for $550, § 1231 applies to the loss.
• B)If the camera is sold for $1,000, § 1231 applies to the gain.
• C)If the camera is sold for $1,300, §§ 1245 and 1231 apply to the gain.
• D)All are true.

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Definitions:

Null Hypothesis

A default hypothesis that there is no significant difference or effect, tested against to determine the likelihood of the alternative hypothesis.

One-Tail Test

A statistical test in which the region of rejection is on only one side of the sampling distribution, used to determine if a parameter is greater than or less than a certain value.

Two-Tail

Describes tests or intervals in statistics that consider extreme values in both tails of the distribution to test hypotheses or compute confidence intervals.

P-Value

The probability of observing data at least as extreme as the data actually observed, under the assumption that the null hypothesis is true.