Final answer:
The statement about the amortization period for startup expenses being 180 months in 2014 is true. This is in accordance with IRS guidelines on spreading startup costs across 180 months for tax purposes.
Step-by-step explanation:
The statement that the amortization period in 2014 for $58,000 of startup expenses is 180 months is true. According to the IRS guidelines at the time, when you incur startup costs, you're allowed to amortize, or spread out, the cost over a 180-month period, beginning with the month your business begins. This would include things like market research, training, and other expenses related to opening a new business or expanding an existing one.
For the Concept Problem Revisited, Joanna is trying to determine how much she can afford to borrow for a house loan with her annual payment ability of $12,000 at an annual interest rate of 4.2%. The present value formula is used to calculate the maximum loan she can afford, and it also allows us to figure out the total payment over 30 years. However, those exact calculations are not provided here; only the approach and the types of financial calculations involved are indicated.