A Subsidiary Must Recognize Depreciation Recapture Income When the Subsidiary

question 20

True/False

A subsidiary must recognize depreciation recapture income when the subsidiary is liquidated into the parent.

---

Definitions:

Walking Beam

A pivoting, tandem-axle suspension beam that maintains axle spacing and alignment while maximizing tire-to-road contact.

Torque Rods

Components in vehicle suspension systems that limit the axle's movement and help maintain alignment by absorbing stress and vibration.

Axle Windup

A term used in automotive mechanics referring to the torsional stress and deformation experienced by vehicle axles during acceleration or under heavy loads.

Equalizing-beam

A suspension component designed to evenly distribute load and shock across multiple axles for smoother vehicle operation.