Question

Which of the following describes a tax consequence on the disposal of depreciable property? Multiple Choice If the selling price exceeds the original cost, recapture would be recognized. If the selling price exceeds the original cost, a capital gain would be recognized. If, at the end of a fiscal year, the balance of the pool is negative, the balance would be deducted from business income.

Name: which of the following describes a tax consequence on the disposal of depreciable property multiple choice if the selling price exceeds the original cost recapture would be recognized if the 42204
Uploaded: 2023-11-30T11:19:39-08:00
Duration: 3 min
Channel: Madhur L
Description: which of the following describes a tax consequence on the disposal of depreciable property multiple choice if the selling price exceeds the original cost recapture would be recognized if the 42204

          Which of the following describes a tax consequence on the disposal of depreciable property?
Multiple Choice
If the selling price exceeds the original cost, recapture would be recognized.
If the selling price exceeds the original cost, a capital gain would be recognized.
If, at the end of a fiscal year, the balance of the pool is negative, the balance would be deducted from business income.

Added by Robin B.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Madhur L

11/30/2023

Step 1

- On disposal, any gain is first allocated to depreciation recapture (ordinary income) up to the amount of depreciation claimed. - Any remaining gain beyond the depreciation is generally treated as a capital gain. Show more…

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Which of the following describes a tax consequence on the disposal of depreciable property? Multiple Choice If the selling price exceeds the original cost, recapture would be recognized. If the selling price exceeds the original cost, a capital gain would be recognized. If, at the end of a fiscal year, the balance of the pool is negative, the balance would be deducted from business income.