If Realized Gain from Disposition of Business Equipment Exceeds Total

question 33

True/False

If realized gain from disposition of business equipment exceeds total depreciation or cost recovery,a portion of the gain will receive Sec.1231 treatment if the equipment's holding period is more than one year.

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Definitions:

Times Interest Earned

A financial metric that compares a company's income before interest and taxes to its interest expenses, indicating ability to meet interest obligations.

Return On Equity

A measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively a company uses investments to generate earnings growth.

Total Assets

The sum of all holdings and properties owned by a person or entity valued at the end of an accounting period.

Total Equity

The total net worth of a company, calculated as total assets minus total liabilities; represents the owners' claim after debts have been paid.