Question

A taxpayer may elect to use the alternative depreciation system (ADS) to compute depreciation for earnings and profits.

a) True
b) False

Answer 1

The colonists objected to British taxes due to a lack of representation and concerns about tax usage, not the principle of taxation itself; the answer to Exercise 7.3.1 is True.

Step-by-step explanation:

The statement "A taxpayer may elect to use the alternative depreciation system (ADS) to compute depreciation for earnings and profits" is not relevant to the provided Exercise 7.3.1, which pertains to the historical context of colonial taxation. The correct response to Exercise 7.3.1 is: a) True. The colonists' objection to taxation by the British government was not necessarily against the principle of taxation itself but was more about the lack of representation in the British Parliament and how the collected tax money would be used.