For example, if your company spends $18,000 on the new vehicle, the company would be required to recognize $2,000 of âgain,â the difference between the insurance recovery and the cost of the replacement vehicle. That is a savings of $3,000 in taxable income.
Definition of RAREFACTION. 1. : the action or process of rarefying. 2. : the quality or state of being rarefied. 3. : a state or region of minimum pressure in a medium traversed by compressional waves (as sound waves). â rarÂ·eÂ·facÂ·tionÂ·al \-shnÉl, -shÉ-nÉl\ adjective. See rarefaction defined for kids. ADVERTISEMENT.
Rarefaction is the reduction of an item's density, the opposite of compression. Like compression, which can travel in waves (sound waves, for instance), rarefaction waves also exist in nature. A common rarefaction wave is the area of low relative pressure following a shock wave (see picture).