When a Non-Current Asset Is Revalued the Tax Base Is

question 19

True/False

When a non-current asset is revalued the tax base is not affected as depreciation for tax purposes will continue to be based on original cost.

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Definitions:

Corporation

A legal entity recognized by law as separate from its owners, providing limited liability protection to its shareholders.

Legal Entity

A legal entity refers to any company or organization that has legal rights and obligations, including the ability to enter into contracts, sue, and be sued.

Sole Proprietorship

A business owned and operated by a single individual, with no legal distinction between the owner and the business entity.

Sole Proprietorship

A sole proprietorship is a type of business structure where one individual owns and operates the business, bearing sole responsibility for its assets and liabilities.