After Personal Property Is Fully Depreciated for Both Regular Income

question 109

True/False

After personal property is fully depreciated for both regular income tax purposes and AMT purposes, the positive and negative adjustments that have been made for AMT purposes will net to zero.

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Definitions:

Debit

An entry on the left side of an account ledger, indicating an increase in assets or expenses, or a decrease in liabilities, equity, or revenue.

Credit

A bookkeeping entry that increases the balance of liabilities and revenue accounts, or decreases the balance of an asset or expense account.

Accounts Receivable

Liabilities customers hold towards a business for the delivery of goods or services that have not been paid off.

Financial Statement

Documents that present the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.