How Is the Recovery Period of an Asset Determined

question 101

Multiple Choice

How is the recovery period of an asset determined?

• A)Estimated useful life
• B)Treasury regulation
• C)Revenue Procedure 87-56
• D)Revenue Ruling 97-56
• E)None of the choices are correct.

---

Definitions:

Reduced Risk

The outcome of actions taken to minimize the probability or impact of uncertain or negative events.

Single Stage Control

A control mechanism in manufacturing or production that is applied at a single point or stage in the production process.

Supply Chain

The network of all the individuals, organizations, resources, activities, and technology involved in the creation and sale of a product, from the delivery of source materials from the supplier to the manufacturer, and eventually to the end user.

Proctor and Gamble

Procter & Gamble is a multinational consumer goods corporation specializing in a wide range of personal health/consumer health, and personal care and hygiene products; these products are organized into several segments, including Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine, & Family Care.