A Taxpayer May Elect to Use the Alternative Depreciation System

question 81

True/False

A taxpayer may elect to use the alternative depreciation system (ADS) to compute depreciation for earnings and profits.

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Definitions:

Unlimited Liability

A legal structure in which the owners of a business are personally liable for all the debts and obligations of the business, extending beyond the amount invested.

Partnership

A legal business arrangement where two or more individuals share ownership, profits, risks, and responsibilities.

Communist Countries

Nations that practice or claim to practice a system of government based on the communist ideology, characterized by the community or state ownership of all property and means of production, with the aim of achieving classlessness and statelessness.

Investment

The allocation of resources, such as capital or time, in the expectation of generating income or profit.