Melinda Has Been Referred to You by One of Your

question 205

Essay

Melinda has been referred to you by one of your clients. In the past, she has prepared her own income tax returns, but she has become overwhelmed by the increased complexity of the tax law. Consequently, Melinda wants you to prepare her return for calendar year 2019. In reviewing her 2018 return, you note that she has claimed as a deduction the entire cost of a business building that should have been capitalized and depreciated. What course of action should you follow?

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Definitions:

Brewmaster

A professional who is responsible for the production, innovation, and quality control of beer in a brewery.

Perfectly Competitive

A market structure characterized by many buyers and sellers, homogeneous products, and free entry and exit, which leads to an efficient allocation of resources.

Market Wage

The prevailing rate of pay for workers in a particular labor market, job, or industry.

Perfect Competitor

A theoretical market situation in which no individual buyer or seller has the power to influence market prices.