If the Tax Cuts and Jobs Act requires a firm to fully deduct the cost of new equipment when it is purchased rather than depreciating that cost over several years,the investment becomes less attractive financially.

Question

Quizplus · Accepted Answer

The statement is incorrect. The Tax Cuts and Jobs Act allows for full expensing of certain types of property, including new equipment. This provides a tax benefit and can make the investment more attractive financially.

If the Tax Cuts and Jobs Act Requires a Firm