Reference no: EM132922524

An additional pertinent factor is that capitalization of construction-related depreciation by the taxpayer who does its own construction work maintains tax parity with the taxpayer who has its construction work done by an independent contractor. The depreciation on the contractor's equipment incurred during the performance of the job will be an element of cost charged by the contractor for his construction services, and the entire cost, of course, must be capitalized by the taxpayer having the construction work performed. The Court of Appeals' holding would lead to disparate treatment among taxpayers because it would allow the firm with sufficient resources to construct its own facilities and to obtain a current deduction, whereas another firm without such resources would be required to capitalize its entire cost including depreciation charged to it by the contractor.

1. Enumerate five advantages and five disadvantages of a planned economic system.
2. Highlight four steps followed in the scientific method used in economics
3. Outline six advantages of a controlled market system
4. summarize five ways through which the government could influence the allocation of resources in a free market economy
5. Differentiate between microeconomy theory and a macroeconomy theory
6. Explain the three basic economic problems
7. Outline six limitations of a free market economy
8. "a government might intervene in a free market economic system" discuss five reasons that might drive a government to intervene
9. Explain four disadvantages of a planned economy
10. Summarize four roles of economy agents in a mixed economy