Going to the Dogs

question 59

Multiple Choice

Going to the Dogs
Demand for pet services is greatly increasing across the United States. In fact, Americans will spend nearly $44 billion dollars on their pets this year. Many American dog owners are seeking out "doggy day cares" that are more like a resort or spa than an ordinary kennel for their canine companion. Day care services for dogs now include toy rooms, outside play areas, doggie massages, treadmills, swimming pools, and cushy beds for nap time. Pet owners can watch their pets via a webcam, and some doggy day cares have a phone where owners can talk to their dogs when they feel their pets need to hear their voices. Rates vary from $20 to $45 a day per pet, depending on the amenities that the pet owner chooses.
-Refer to Going to the Dogs.One challenge to adoption of the dog day care is the fact that dog owners are used to paying a somewhat minimal fee for boarding their dogs in a kennel,while a day care center may demand many times as much for the same time span.This suggests that the _____ of the new product may affect the rate of diffusion.

• A) compatibility
• B) complexity
• C) relative advantage
• D) observability
• E) trialability

Distinguish between ordinary and necessary business expenses.

Calculate the adjusted basis for depreciation and cost recovery of business assets.

Identify the tax treatment of specific business expenses and their deductibility.

Comprehend the definition and tax implications of listed property.