For Corporations, §291 Recaptures 20 Percent of the Lesser of Depreciation

question 89

True/False

For corporations, §291 recaptures 20 percent of the lesser of depreciation taken or the realized gain as ordinary income.

---

Definitions:

Rate of Inflation

The percentage increase in the general price level of goods and services in an economy over a period of time.

Annual Earnings

The total amount of money earned by an individual or entity in one year, before deductions such as taxes.

Federal Minimum Wage

The lowest legal hourly wage that an employer can pay to workers, as mandated by the federal government.

Earns Less

Refers to individuals or entities receiving lower income or profits compared to others or over a previous period.