A Tax on the Value of Real Estate Is Called

question 9

Multiple Choice

A tax on the value of real estate is called what type of tax?

• A) Excise
• B) Income
• C) Inheritance
• D) Sales
• E) Property

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Definitions:

Double-Declining-Balance Method

A form of accelerated depreciation where an asset loses value at twice the rate of the traditional straight-line method.

Depreciation

Methodically dividing the cost of a tangible asset throughout its effective life.

Residual Value

The estimated amount that an asset will be worth at the end of its useful life, after it has been fully depreciated.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life evenly.