Which of the Following Is True Regarding Depreciation Recapture

question 96

Multiple Choice

Which of the following is True regarding depreciation recapture?

• A) Changes the character of a loss.
• B) Changes the character of a gain.
• C) Changes the amount of a gain.
• D) Only applies to ordinary assets.
• E) None of the choices are correct.

---

Definitions:

Small Business Manager

An individual responsible for overseeing the operations, making critical decisions, and leading the strategy of a small business.

Incubator

An organization designed to support startups and new businesses, often by providing workspace, mentorship, and resources.

Start-Up Process

The series of steps undertaken by entrepreneurs to establish a business, which includes ideation, market research, planning, funding, and launching operations.

Maturity

The stage in life or condition when development is complete and stable, often associated with full growth or an ability to reproduce.