Under the Computation of the Alternative Minimum Tax, the Alternative

question 89

True/False

Under the computation of the alternative minimum tax, the Alternative Depreciation System may be used but is not required.

---

Definitions:

Useful Life

The estimated period that an asset is expected to be usable for the purpose it was acquired, affecting its depreciation or amortization.

Straight-Line Method

A method of calculating depreciation of an asset where its cost is evenly spread over its useful life.

Residual Value

The estimated value of an asset at the end of its useful life or lease term.

Depreciation Expense

the systematic allocation of the cost of a tangible asset over its useful life.