If a Firm Does Not Expect to Owe Taxes for a Few

question 65

Multiple Choice

If a firm does not expect to owe taxes for a few years and needs some equipment,the firm should:

• A)lease the equipment and retain the tax benefits.
• B)lease the equipment with the lessor retaining the tax ownership of the asset.
• C)borrow the money to buy the asset and then depreciate it using MACRS depreciation.
• D)buy the equipment with cash and depreciate it using MACRS.
• E)buy the equipment and depreciate it straight-line over the life of the asset.

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Definitions:

Anxiety-Related Disorders

A group of mental health disorders characterized by significant and persistent anxiety and fear, which negatively impact daily functioning.

Second Only

Indicates that something is immediately after the first in position, importance, or rank, often used to denote a high level of status or quality next to the top-ranking position.

Obsessions

Persistent, intrusive, and unwanted thoughts or urges that cause distress or anxiety.

Repetitive Behaviours

Actions or rituals that are performed the same way repeatedly, often observed in various psychological conditions.