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On January 3,2014,John acquired and placed into service business tools costing $10,000.The tools have a 3-year class life.No other assets were purchased during that year.The depreciation in 2017 for those tools is (Sec.179 and bonus depreciation were not applied)
Distressed Firm
A company experiencing financial hardships, often reflected in its inability to meet financial obligations.
Capital Structure
Capital Structure refers to the mix of debt and equity financing a company uses to fund its operations and growth.
M&M Proposition I
A principle of corporate finance stating that, under certain conditions, the value of a company is not affected by how it is financed, regardless of whether the company is financed by debt or equity.
Value of the Firm
The total worth of a company based on its current market capitalization plus any debts, and minus any cash on the company's balance sheet.
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