Keosha Acquires 10-Year Personal Property to Use in Her Business

question 51

True/False

Keosha acquires 10-year personal property to use in her business in 2016 and takes the maximum cost recovery deduction for regular income tax purposes.As a result of this,Keosha will incur a positive AMT adjustment in 2016.

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Definitions:

Ratchet Wheels

Wheels equipped with teeth that lock into place with each motion in one direction, allowing controlled movement.

Transmit Motion

The process of conveying or transferring motion from one part of a mechanical system to another.

Abbreviation

A shortened form of a word or phrase used for convenience, clarity, or brevity in written and spoken communication.

Gauge

An instrument or tool used to measure, test, or visually compare physical characteristics such as dimensions, thickness, or depth.