If Company A uses equipment it leases from Company B, then the company (i.e., Company A) is allowed to claim depreciation deductions on the equipment for tax purposes for the years that they used the equipment.

A. True

B. False

Taxable income for capital gain of an asset that is being sold is calculated as

A. Cost basis - book value

B. Sale price - depreciation in the year of sale

C. Sale price - book value

D. Cost basis - sale price

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