Grant Exchanges an Old Pizza Oven from His Business for a New

question 118

Multiple Choice

Grant exchanges an old pizza oven from his business for a new oven.In addition to the old oven,which had a basis of $10,000,Grant pays $4,000 cash and takes out a loan on the new oven for $6,000.The new oven is valued at $22,000.What is Grant's basis in the new oven?

• A)$12,000
• B)$16,000
• C)$20,000
• D)$22,000
• E)$32,000

Interpret the relationship between government spending and its impact on the economy.

Understand the concept of transfer payments within government expenditures.

Assess the implications of demographic changes on government spending.

Differentiate between the costs to the private sector of government taxation and spending.