Section 179 Allows a Business, with Certain Restrictions, to Do

question 20

Multiple Choice

Section 179 allows a business, with certain restrictions, to do which of the following?

• A) Offset the tax liability with the cost of the asset in the year of purchase.
• B) Expense the asset immediately in the year of purchase.
• C) Expense the asset using double declining balance depreciation during the life of the asset.
• D) Get a government grant to purchase the asset.

Identify and distinguish between unilateral and bilateral mistakes in contracts.

Recognize the role of misrepresentation and fraud in undermining the validity of a contract.

Understand the concept of material facts and their significance in contract law.

Acknowledge the limitations and applicability of remedies in mistaken and fraudulent situations.

---

Definitions:

Cost Method

An accounting method used to value inventory or investments, based on the historical cost paid for the asset.

Voting Stock

Voting stock refers to shares that give the shareholder the right to vote on company matters, such as electing the board of directors.

Debt Securities

Financial instruments representing a loan made by an investor to a borrower, typically including bonds, notes, and bills.

Equity Securities

Financial instruments representing ownership in a company, such as stocks.