Alvin Is Employed by an Automobile Dealership as Its Manager

question 82

Multiple Choice

Alvin is employed by an automobile dealership as its manager. As such, he purchased an SUV for $32,000 (fair market value is $48,000) . No other employees are permitted a discount. What is Alvin's basis in the SUV?

• A) $16,000.
• B) $32,000.
• C) $48,000.
• D) $80,000.
• E) None of the above.

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Definitions:

Autonomous Net Taxes

Taxes that are not influenced by the level of economic activity, such as fixed taxes.

Government Purchases

Government purchases refer to spending by government entities on goods and services that directly contribute to the economy's aggregate demand.

Aggregate Demand

The total demand for all goods and services within a particular market or economy.

Government Impact

Refers to the effects of government policies and actions on an economy's performance and the well-being of its citizens.