For Corporations, §291 Recaptures 20 Percent of the Lesser of Depreciation

question 89

True/False

For corporations, §291 recaptures 20 percent of the lesser of depreciation taken or the realized gain as ordinary income.

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Definitions:

Coupon Rate

The yearly percentage of the bond's face value that is paid out as interest by a bond.

Current Yield

The annual income (interest or dividends) divided by the current price of the security.

Times-Interest-Earned Ratio

A financial ratio that measures a company's ability to meet its debt obligations based on its current earnings before interest and taxes.