Which of the Following Is True Regarding Depreciation Recapture

question 19

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:

Intermediate Products

Goods that are produced by one business for use in further production processes by another business.

Sugar Cane

A tropical grass plant used primarily for its sucrose content, from which sugar is extracted.

Industrial Fiber

A type of fiber used in manufacturing processes, typically characterized by high strength and durability suitable for industrial applications.

Finished Products

Goods that have completed the manufacturing process and are ready for sale.