Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

7. Receivables and Investments

Introduction to Investments in Securities

Financial Accounting

7. Receivables and Investments

Introduction to Investments in Securities

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following assets is eligible for Section 179 expensing under U.S. tax law?

Goodwill acquired in a business combination

Stocks held as investments

Land acquired for future development

New machinery purchased for business use

Previous problemNext problem

Verified step by step guidance

Understand the concept of Section 179 expensing: Section 179 of the U.S. tax code allows businesses to deduct the cost of certain qualifying assets as an expense in the year they are placed in service, rather than depreciating them over time. This is designed to encourage investment in business assets.

Identify the types of assets eligible for Section 179 expensing: Qualifying assets typically include tangible personal property used in business, such as machinery, equipment, and vehicles. Real property (e.g., land and buildings) and intangible assets (e.g., goodwill) are generally not eligible.

Analyze each option provided in the problem: Goodwill acquired in a business combination is an intangible asset and does not qualify for Section 179 expensing. Stocks held as investments are financial assets and also do not qualify. Land acquired for future development is real property and is excluded from Section 179 expensing.

Focus on the correct answer: New machinery purchased for business use qualifies for Section 179 expensing because it is tangible personal property used in business operations.

Conclude the reasoning: The correct answer is new machinery purchased for business use, as it meets the eligibility criteria under Section 179 expensing rules.