In Case of an Existing Asset Which Is Depreciable and Is

question 20

True/False

In case of an existing asset which is depreciable and is used in business and is sold for a price equal to its initial purchase price, the difference between the sales price and its book value is considered as recaptured depreciation and will be taxed as ordinary income.

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Definitions:

Deontology

An ethical theory that uses rules to distinguish right from wrong, focusing on the adherence to moral duties and obligations.

Absolute Rules

Prescriptive regulations or directives that allow no exceptions or deviations, ensuring strict adherence and uniform application.

Justice

A principle of fairness and moral equity in the treatment of individuals and the distribution of resources.

Accepted Practice

Methods or procedures that are widely accepted and used by professionals within a particular field as being correct or most effective.