When Taxing Authorities Permit a Choice Among Alternative Depreciation Methods

question 65

Multiple Choice

When taxing authorities permit a choice among alternative depreciation methods, a firm should choose the alternative that allows it to pay the _____ amount of tax, as _____ as possible, within the law.

• A)most; early
• B)most; late
• C)least; early
• D)least; late
• E)same; often

Recognize the characteristics and implications of increasing-cost, decreasing-cost, and constant-cost industries on the industry's supply curve and market prices.

Interpret the impact of external and internal economies and diseconomies of scale on long-run average costs.

Describe the adjustment processes in perfectly competitive markets towards long-run equilibrium under different cost conditions.

Analyze the effects of demand changes on industry growth, prices, and firm entry or exit in the long run.

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Definitions:

Methanol

A simple alcohol with the formula CH₃OH, used as a solvent, antifreeze, fuel, and as feedstock for chemical synthesis.

Balanced Equation

A chemical equation in which the number of atoms for each element is the same on both the reactant and product sides.

Propanol

An alcohol with the chemical formula C3H8O, used as a solvent and antiseptic.

Balanced Equation

A chemical equation where the number of atoms for each element is equal on both the reactant and product sides, indicating conservation of mass.