The § 1245 Depreciation Recapture Potential Does Not Reduce the Amount

question 67

True/False

The § 1245 depreciation recapture potential does not reduce the amount of the charitable contribution deduction under
§ 170.

---

Definitions:

Estimated Annual Overhead Costs

Predicted yearly expenses that are not directly tied to specific products or services but are necessary for running a business.

Expected Annual Operating Activity

The forecasted level of operations for a company during a financial year, including production and sales volumes.

Process Costing

An accounting methodology used to allocate production costs to individual units of output when products are virtually indistinguishable from each other.

Similar Goods

Products that are alike in quality and function and can serve as substitutes for one another in the market.