Which of the following is correct about depreciation under Federal tax law? I. The recovery period is

Question:

Which of the following is correct about depreciation under Federal tax law?

I. The recovery period is longer than the useful life of the asset.

II. There are different recovery periods for new and used property.

III. Salvage values are ignored.

a. I and II only

b. II only

c. III only

d. I, II, and III

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...