Indicate Whether Each of the Items Listed Below Would Be

question 62

Multiple Choice

Indicate whether each of the items listed below would be (a) included in gross income or (b) excluded from gross income for the 2019 tax year.
-Wages

• A)Included
• B)Excluded

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Definitions:

Salvage Values

Salvage Values represent the estimated residual value of an asset after its useful life has ended and it has been fully depreciated.

Useful Lives

The estimated periods of time over which fixed assets, such as machinery or buildings, are expected to be used by a business.

Straight-line Method

A method of calculating depreciation or amortization by evenly distributing the cost of an asset over its expected useful life.

Depreciation

The process of allocating the cost of a tangible asset over its useful life, representing its decrease in value over time.