When a Non-Current Asset Is Revalued the Tax Base Is

question 19

True/False

When a non-current asset is revalued the tax base is not affected as depreciation for tax purposes will continue to be based on original cost.

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Definitions:

Service Company

A business that provides intangible products or services to customers, such as consulting, maintenance, or software development.

Retail Shop

A business establishment that sells goods or merchandise directly to the end consumer for personal or household consumption.

Supplies On Hand Account

An account used to track the value of materials and supplies currently available for use within a business.

Adjustment

An entry made in accounting records to correct or allocate transactions properly.