In Case of an Existing Asset Which Is Depreciable and Is

question 20

True/False

In case of an existing asset which is depreciable and is used in business and is sold for a price equal to its initial purchase price, the difference between the sales price and its book value is considered as recaptured depreciation and will be taxed as ordinary income.

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Definitions:

Circular Reference

A circular reference occurs when a formula in a spreadsheet or database refers back to its own cell, either directly or through a chain of references, which can cause errors in calculations.

Spell-checking

is the process of identifying and correcting spelling errors in text using a software program or tool.

Order of Operations

A set of rules defining the sequence in which operations should be performed in expressions, including arithmetic and logical expressions.

Pixel

The smallest unit of a digital image or display, representing a single point of color.