Problem 1) Vincent pays $20,000 for equipment to use n his trade or business. He pays sales tax of $800 as a result of the purchase. Must the $800 tax be capitalized as part of the purchase price?
Problem 2) Your friends tells you that the capital gains tax is discriminatory in that it is imposed upon individuals who can afford to buy capital assets. Do you agree or disagree? Be sure to include the definition of capital asset and capital gain in your response.