Which of the Following Would Probably Be Treated as a Capital

question 346

Multiple Choice

Which of the following would probably be treated as a capital item by a large clothing manufacturer?

• A) Computer-controlled fabric cutting machines.
• B) Zippers.
• C) Cloth.
• D) Buttons.
• E) None of these would be treated as a capital item.

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Definitions:

Taxable Income

The sum of money earned by a person or a business that is used to calculate the owed tax payable to the government.

After-Tax Income

The amount of income that remains after all taxes have been deducted.

Sales Tax

A tax levied by a government on the sale of goods and services, typically calculated as a percentage of the selling price.

Excise Taxes

Taxes imposed on specific goods, services, or activities, often used to discourage consumption of certain items or to raise revenue for targeted purposes.