Match Each Statement with the Correct Term Below

question 35

Multiple Choice

Match each statement with the correct term below.
-Capital recovery

• A)The depreciation method for real estate.
• B)A term used synonymously with the term depreciation.
• C)The depreciation system for assets placed in service after 1986.
• D)The initial basis of an asset minus the amount of capital recovered.
• E)The term used to describe the amount multiplied by the MACRS percentages to calculate the annual depreciation deduction.
• F)A provision intended to provide relief to small companies by allowing an immediate deduction for purchases of business equipment and by simplifying record keeping.

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Definitions:

Counteroffer

An offer made in response to another offer, rejecting the original offer and presenting new terms for an agreement.

Option

A separate contract in which an offeror agrees not to revoke her offer for a stated period of time in exchange for some valuable consideration.

Reasonable Time

A period that is fair and appropriate given the circumstances, often used in contracts to define a period for the performance of an obligation.

Subjective Approach

A perspective or method that relies on personal opinions, interpretations, feelings, or tastes, rather than objective or external facts.