If the Accumulated Depreciation on Business Equipment Held Longer Than

question 68

True/False

If the accumulated depreciation on business equipment held longer than one year exceeds realized gain on the sale of the equipment,all of the realized gain will be treated as Sec.1231 gain.

---

Definitions:

Average Costs

The cost per unit is determined by dividing the total production cost by the number of units manufactured.

Long Run

A period sufficient for all inputs to production, including physical capital, to be adjusted.

Shut-Down

A temporary or permanent cessation of operations in a business or factory, often due to financial difficulties or external factors.

Marginal Costs

The additional cost incurred from producing one more unit of a product or service.