Which of the Following Expenditures Must Be Capitalized for Tax

question 1

Multiple Choice

Which of the following expenditures must be capitalized for tax purposes?

• A) Intangible drilling and development costs
• B) Leasehold costs
• C) Research and development costs
• D) Advertising expenditures

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Definitions:

Short Run

(1) In microeconomics, a period of time in which producers are able to change the quantities of some but not all of the resources they employ; a period in which some resources (usually plant) are fixed and some are variable. (2) In macroeconomics, a period in which nominal wages and other input prices do not change in response to a change in the price level.

Long Run

In microeconomics, a period of time long enough to enable producers of a product to change the quantities of all the resources they employ, so that all resources and costs are variable and no resources or costs are fixed. In macroeconomics, a period sufficiently long for nominal wages and other input prices to change in response to a change in a nation’s price level.

U.S. Electricity

The system of electrical generation, transmission, and distribution operated within the United States.

Generated From

Derived or produced from a particular process or source.