Finra Exam Series-7 Topic 4 Question 106 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 106
Topic #: 4

[All Series-7 Questions]

Which of the following best describes depreciation?

Atax credit available to investors in heavy equipment

Bdeductions from gross income to offset lower value of equipment

Creturn of principal from real estate investors

Dcapitalized an amortized maintenance costs

Show Suggested Answer

Suggested Answer: B

deductions from gross income to offset lower value of equipment. Depreciation is the deduction of costs for capital assets as their value declines.

by Dorothea at Jan 22, 2025, 04:11 PM

Limited Time Offer

25%

Off

Contribute your Thoughts:

Submit Cancel

11 days ago

Hmm, I think C is the way to go. Depreciation is all about getting that sweet, sweet return on your real estate investments, right?

upvoted 0 times

...

12 days ago

Definitely B. Depreciation is all about writing off the declining value of your equipment. Gotta love those tax deductions!

upvoted 0 times

...

15 days ago

Depreciation is more about the decrease in value of assets, so I still think B) is the best answer.

upvoted 0 times

...

1 months ago

I think the answer is B) deductions from gross income to offset lower value of equipment.

upvoted 0 times

...