In Order to Be Eligible for the Credit for the Elderly

question 56

True/False

In order to be eligible for the credit for the elderly or the disabled,the taxpayer must be age 55 or older or have retired on permanent disability.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales.

Depreciation Tax Shield

The Depreciation Tax Shield refers to the reduction in income tax a company achieves through deducting depreciation expenses, thus lowering its taxable income.

Straight-Line Method

An accounting method of depreciation where an asset's cost is reduced equally over its useful life.

Project Life

The duration over which a project is expected to operate or be productive before it is decommissioned or ends.