Song Company, a Calendar Year Taxpayer, Purchased a Total of $2,014,400

question 12

Multiple Choice

Song Company, a calendar year taxpayer, purchased a total of $2,014,400 tangible personalty in 2016. How much of this cost can Song elect to expense under Section 179?

• A) -0-
• B) $500,000
• C) $2,014,400
• D) None of the above

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Definitions:

Durbin-Watson Statistic

A test statistic used to detect the presence of autocorrelation in the residuals from a regression analysis.

Critical Values

Critical values are specific points on the scale of a statistical distribution that are used to determine the threshold at which the null hypothesis of a test can be rejected.

Positive Autocorrelation

Occurs when a variable's current value is positively related to its past values in a time series.

Durbin-Watson Statistic

A statistical measure employed to identify if there is autocorrelation at the first lag within the residual values following a regression analysis.