The gains are commonly known as depreciation recapture. True or false?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter17: Activity Resource Usage Model And Tactical Decision Making
Section: Chapter Questions
Problem 5DQ: What is a relevant cost? Explain why depreciation on an existing asset is always irrelevant.
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The gains are commonly known as
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Depreciation Recapture means a procedure adopted by USA Internal Revenue Service to collect taxes on gain on sale of assets by the taxpayer and taxpayer had already taken offsetting of ordinary income by depreciation amount. Depreciation recapture only applies to gains, it does not apply to losses.
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