If a Taxpayer Had Elected to Expense, Under Code Sec

question 111

Multiple Choice

If a taxpayer had elected to expense, under Code Sec. 179, all or part of qualifying depreciable business assets and the assets are disposed of in a later tax year, any gain recognized is treated as ordinary income to the extent of

• A) the amount expensed.
• B) depreciation deducted.
• C) depreciation deducted over the straight-line rate.
• D) (a) and (b).
• E) (a) and (c).

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Definitions:

Property Taxes

Taxes levied by local governments based on the assessed value of land and property owned.

Economic Recovery

The phase of economic improvement following a recession or downturn, characterized by increases in employment, consumer spending, and overall economic growth.

Balance Budgets

Financial planning or policy aimed at ensuring that revenue equals or exceeds expenses, to avoid deficits and maintain fiscal health.