New 55% Off on All Courses - Enroll Now! Click Here

    Question

    Which is used to determine the actual cash value of

    property at time of loss?
    A appreciation Correct Answer Incorrect Answer
    B Depreciation Correct Answer Incorrect Answer
    C Realization Correct Answer Incorrect Answer
    D Recognition Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life and is used to account for declines in value. Businesses depreciate long-term assets for both tax and accounting purposes. For tax purposes, businesses can deduct the cost of the tangible assets they purchase as business expenses; however, businesses must depreciate these assets according to IRS rules about how and when the company can take the deduction

    Practice Next