This Year, Yuan Started a Business Selling Computer Parts Both

question 16

Multiple Choice

This year, Yuan started a business selling computer parts both in-store and online. He purchased via credit card, $60,000 of goods during the year. His ending inventory was $9,000. For tax purposes, Yuan adopted the cash method and the treatment of inventory as deductible when purchased per his books. His deduction for inventory for the year is:

• A) $51,000.
• B) $60,000.
• C) $69,000.
• D) None of the above.

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Definitions:

Problem Identification

The initial step in the problem-solving process where the issue is clearly defined and understood before seeking solutions.

Stakeholders

Individuals, groups, or organizations that have an interest or concern in an organization and can be affected by the organization's actions, objectives, and policies.

Bounded Rationality

A concept that suggests individuals make decisions based on a limited amount of information and cognitive constraints.

Rational Choice

is a theory that assumes individuals make decisions based on the maximization of personal advantage, weighing benefits against costs.