On January 3,2010,John Acquired and Placed into Service Business Tools

question 26

Multiple Choice

On January 3,2010,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 2013 for those tools is (Sec.179 and bonus depreciation were not applied)

• A)$-0-.
• B)$741.
• C)$1,920.
• D)$3,333.

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Definitions:

Perfectly Elastic

This describes a situation where a small change in price leads to an infinite change in the quantity demanded or supplied.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to purchase at various prices.

Elastic Demand

A situation where the quantity demanded of a good or service changes significantly in response to a change in price.

Total Revenue

The total amount of money a firm receives by selling goods or services.