Catherine Purchased Furniture and Fixtures (7-Year Property)for Her Shop for $80,000

question 41

Multiple Choice

Catherine purchased furniture and fixtures (7-year property) for her shop for $80,000 in May 2014.What AMT depreciation adjustment is required in 2014?

• A) $0.
• B) $2,864.
• C) $8,568.
• D) $11,432.

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Definitions:

Variable Costs

Variable Costs are expenses that vary directly with the level of production or business activity.

Sensitivity Analysis

A technique used to determine how different values of an independent variable affect a particular dependent variable under a given set of assumptions.

Break-even Point

The financial point at which total costs equal total revenue, meaning that the business is neither making a profit nor a loss.

Cost-volume-profit Analysis

An accounting technique used to determine how changes in costs and volume affect a company's operating income and net income.