Gain Recognized on the Sale of a Section 1245 Asset

question 59

True/False

Gain recognized on the sale of a Section 1245 asset is classified as ordinary income up to the amount of depreciation claimed.

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Definitions:

Treasury Shares

Stocks that the original issuing company repurchased, subsequently decreasing the quantity of available shares in the market.

Percent Ownership

The percentage of an entity or asset owned by an investor or company, often determining the level of control or influence.

Excess Acquisition-Date Fair Value

Refers to the amount by which the fair value of the acquired net assets exceeds the purchase consideration in a business combination.

Indirect Method

A method used in cash flow statement preparation that adjusts net income for non-cash transactions.