Average Age of a Company's Long-Term Operating Assets Is Computed

question 2

Multiple Choice

Average age of a company's long-term operating assets is computed as ________.

• A) the amount of depreciation expense divided by accumulated depreciation
• B) the amount of accumulated depreciation divided by depreciation expense
• C) the amount of depreciation expense divided by the balance of ending net fixed assets
• D) the balance of ending net fixed assets divided by depreciation expense

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Definitions:

Income Tax Withholding

The process where employers deduct tax from employees' wages and directly pay it to the government.

Exemption

In taxation, an exemption is a monetary exclusion that can be applied to reduce taxable income, often granted by the government to reduce the tax burden for certain groups, circumstances, or types of income.

Qualifying Relative

A dependent for whom the taxpayer provides financial support and who meets certain IRS criteria for tax benefits.

Dependent Taxpayer Test

Criteria used to determine if a taxpayer can be claimed as a dependent on someone else's tax return, affecting exemptions and credits.