Iris, a Calendar Year Cash Basis Taxpayer, Owns and Operates

question 69

Multiple Choice

Iris, a calendar year cash basis taxpayer, owns and operates several TV rental outlets in Florida, and wants to expand to other states.During 2012, she spends $14,000 to investigate TV rental stores in South Carolina and $9,000 to investigate TV rental stores in Georgia.She acquires the South Carolina operations, but not the outlets in Georgia.As to these expenses, Iris should:

• A)Capitalize $14,000 and not deduct $9,000.
• B)Expense $23,000 for 2012.
• C)Expense $9,000 for 2012 and capitalize $14,000.
• D)Capitalize $23,000.
• E)None of the above.

Grasp the concept of social comparison and its impact on personal assessment and motivation.

Appreciate the influence of cultural norms and values on self-conception and behavior.

Analyze the role of self-perception in understanding and changing attitudes.

Explore the effects of self and social identity on behavior and social relationships.

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Definitions:

Diminishing Returns

A principle stating that if one factor of production is increased while others remain constant, the overall returns will eventually decrease after a certain point.

Real GDP

Gross Domestic Product adjusted for inflation, providing a more accurate representation of an economy's size and how it's performing over time.

Foreign Direct Investment

A company or individual from one country deploying capital into business ventures or assets in another country, whether by setting up operations or purchasing business properties.

Economic Growth

An increase in the production of economic goods and services, compared from one period of time to another, often measured by GDP.