Which of the Following Statements Is Correct

question 66

Multiple Choice

Which of the following statements is correct?

• A) When depreciable property is gifted to another individual taxpayer, the depreciation recapture potential is extinguished.
• B) When depreciable property is inherited by a taxpayer, the depreciation recapture potential is extinguished.
• C) When corporate depreciable property is distributed as a dividend, the depreciation recapture potential is generally not recognized.
• D) When depreciable property is contributed to charity, the depreciation recapture potential has no effect on the amount of the charitable contribution deduction.
• E) All of the above are correct.

---

Definitions:

Research And Development Stage

A phase in product development focusing on experimentation, exploration, and innovation to create new products or improve existing ones.

Venture Growth

This describes the expansion and scaling process of a new business endeavor, focusing on increasing size, revenue, and market presence.

Entrepreneurial Leaders

Individuals who combine the vision and innovation of an entrepreneur with leadership skills to develop, organize, and manage a business.

Good Performance

The achievement of a set of standards or goals, often measured by productivity, efficiency, and quality, in any given task or job.