Boxer Corporation Buys Equipment in January of the Current Year

question 109

Multiple Choice

Boxer Corporation buys equipment in January of the current year with a seven-year class life for $15,000. The corporation expensed the $15,000 under Sec. 179. The deduction in the year of purchase for E&P purposes due to the acquisition and expensing of the equipment is

• A)$1,500.
• B)$3,000.
• C)$14,000.
• D)$15,000.

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Definitions:

Profits

Financial gains obtained when the revenues earned from business activities exceed the expenses, costs, and taxes needed to sustain those activities.

Underdeveloped Countries

Nations characterized by low levels of economic productivity, income, and technological sophistication, often accompanied by poor standards of living.

World Wars

Major global conflicts involving many of the world's nations; notably, the two occurrences in the 20th century (1914-1918 and 1939-1945).

Corporate Greed

The pursuit of excessive profit by businesses at the expense of ethical standards, workers' rights, and the public good.