Eduardo Is Planning to Purchase Some New Pizza Ovens for His

question 7

Essay

Eduardo is planning to purchase some new pizza ovens for his business.He knows that there are various incentives in the tax law to acquire new assets in 2013.Discuss the tax incentives available and the issues to consider in deciding whether to elect them.

---

Definitions:

Units

Measurements used to quantify physical quantities, such as kilograms for mass or meters for length.

Utility Function

A formula that ranks various outcomes by their level of satisfaction or utility to a consumer.

Numeraire Good

A commodity selected as a standard of value and used as the unit of account in economic models, facilitating comparisons between different goods or services.

Initial Endowment

The initial allocation of assets, income, or resources that an individual, institution, or country possesses.