FIFO and LIFO Are Two Common Methods Used to Compute

question 224

True/False

FIFO and LIFO are two common methods used to compute the depreciation of tangible assets.

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Definitions:

Straight-Line Depreciation

A method of calculating the depreciation of an asset by evenly spreading its cost over its useful life.

Tax Bracket

Ranges of income set by the government that determines the rate at which income is taxed.

Long-Term

Refers to holding an asset for more than a year before disposal, affecting the calculation of capital gains and losses for tax purposes.

Short-Term Gain

A profit from the sale of an asset held for one year or less.