Why Might a Taxpayer Elect to Depreciate Assets Using the Alternative

question 47

Multiple Choice

Why might a taxpayer elect to depreciate assets using the Alternative Depreciation System (ADS) ?
I.The taxpayer desires rapid write off of assets.
II.The taxpayer may be close to being subject to the alternative minimum tax.
III.The taxpayer is experiencing a low income time period.
​

• A)Statements I and III are correct.
• B)Only statement I is correct.
• C)Statements II and III are correct.
• D)Statements I and II are correct.
• E)Statements I, II, and III are correct.

---

Definitions:

Indirect Compensation

Benefits provided to employees that are not part of their direct pay, such as health insurance, retirement plans, or child care allowances.

Negotiating Committees

Groups designated to represent the interests of parties during negotiations, often within the context of labor relations or business deals.

National Union Representatives

Individuals or officials who represent a labor union at a national level, dealing with issues affecting members across the country.

Continuous Bargaining

A process in labor relations where negotiations between employers and employees, or their representatives, occur on an ongoing basis to resolve workplace issues.