A Taxpayer May Elect to Use the Alternative Depreciation System

question 21

True/False

A taxpayer may elect to use the alternative depreciation system (ADS) on property used predominantly outside the United States.

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Definitions:

Significant Influence

The power to participate in the financial and operating policy decisions of an investee, but not control them.

Strategic Operating

Involves making decisions and implementing practices that contribute to the long-term success and operational efficiency of a company.

Financing Policies

Guidelines a company follows to manage its financing decisions, including how it chooses between debt and equity financing.

FVTPL

Fair Value Through Profit or Loss, a financial reporting method where assets and liabilities are periodically revalued, with the changes affecting the income statement directly.