If a Business Elected or Was Required to Use Straight-Line

question 43

True/False

If a business elected or was required to use straight-line depreciation under the alternative depreciation system for personal property, only a percentage of straight-line depreciation taken is subject to recapture as ordinary income.

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Definitions:

Not-for-Profit Entities

Organizations that operate primarily for purposes other than making a profit, focusing instead on fulfilling a societal, educational, charitable, or cultural mission.

Equity Securities

Financial instruments that signify an ownership interest in a company or entity and may entitle the holder to a share of the corporation's residual cash flows or assets.

Unrealized Gains

Increases in the value of assets that have not yet been sold and therefore not converted into cash.