Boxer Corporation buys equipment in January of the current year with a seven-year class life for $15,000. The corporation expensed the $15,000 under Sec. 179. The deduction in the year of purchase for E&P purposes due to the acquisition and expensing of the equipment is:.

The deduction in the year of purchase for E&P purposes due to the acquisition and expensing of the equipment is: $3,000.

Explanation:

E&P refers to accumulated earnings and profits in accounting term. The term was commonly related with the stockholders of corporations. Accumulated earnings and profits are generally calculated by obtaining the net profit of the company after paying dividends to the stockholders.

The economic ability of the corporation can be measured through E&P. In the above scenario, the Boxer Corporation purchases equipment for $15000 with seven-year of class life. This purchase comes under the Sec.179. The deduction in the year of purchase for E&P purposes will be $3000 for Boxer Corporation.

so they can see what that city is producing and to also see if they can some how get that product. like gold in africa.