Maxcom Inc

question 4

Multiple Choice

Maxcom Inc. purchased 15 passenger automobiles for use by its sales force. Which of the following statements is true?

• A) Maxcom must use the straight-line method to depreciate the passenger automobiles for tax purposes.
• B) Maxcom's annual tax depreciation on the passenger automobiles may be limited to an amount less than MACRS depreciation.
• C) Maxcom's annual tax depreciation on the passenger automobiles is computed under MACRS.
• D) Even though Maxcom purchased the automobiles for business use, Maxcom is not allowed any tax depreciation for the automobiles.

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Definitions:

Small Business

An independently owned and operated company that is limited in size and revenue depending on the industry.

Corporate Social Responsibility

A business approach that contributes to sustainable development by delivering economic, social, and environmental benefits for all stakeholders.

Economic Power

The capacity of a party (whether a nation, corporation, or individual) to influence or control economic activities, including market forces, production, and financial resources.

Social Power

The ability of an individual or group to influence the behavior, beliefs, or attitudes of others within a social context.