Which of the Following Is True Regarding Depreciation Recapture

question 35

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:

Legal Systems

Comprehensive frameworks of laws, regulations, institutions, and procedures that guide the administration of justice in a country or region.

States

Politically defined regions or territories that make up a country, each with its own government and administrative powers within the context of a federal system.

Multilateral Free Trade Agreement

An agreement between three or more countries to reduce trade barriers and tariffs to encourage trade and economic cooperation among them.

Tariffs

Taxes imposed on imported goods, typically to protect domestic industries or to raise government revenue.