In general, business personal assets can be depreciated if the asset: a. Is land
ID: 1108279 • Letter: I
Question
In general, business personal assets can be depreciated if the asset:
a. Is land, has a useful life that can be determined and is longer than one year, and decays, gets used up, wears out, or becomes obsolete.
b. Is intangible property not used for business purposes and has a useful life that can be determined and is less than one year.
c. Is used for business purposes, has a useful life that can be determined and is longer than one year, and decays, gets used up, wears out, or becomes obsolete.
d. Is tangible property used for business purposes, has a useful life that can be determined and is less than one year, and only becomes obsolete.
Explanation / Answer
c. Is used for business purposes, has a useful life that can be determined and is longer than one year, and decays, gets used up, wears out, or becomes obsolete.
Reason
Depreciation is generally considered for products with higher life. Thus, it has to have a value longer than one year and must have business uses.