While Congress Has Enacted Several Different Depreciation Methods, All Currently

question 46

True/False

While Congress has enacted several different depreciation methods, all currently owned assets are depreciated using the method in effect when the asset was placed in service.

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Definitions:

Retained Earnings Account

An equity account that represents the accumulated portion of net income left over after dividends are paid to shareholders.

Cumulative Earnings

The total net income of a company since its inception, minus any dividends paid to shareholders.

Dividends

Distributions to shareholders from a company, typically originating from the profits earned by the corporation.

Current Market Value

refers to the amount at which an asset or security could be bought or sold in a current transaction between willing parties.