Question

What conditions must a property satisfy to be considered​ depreciable?

Choose all the correct conditions below.

A.

It must be something that wears​ out, decays, gets used​ up, becomes​ obsolete, or loses value from natural causes.

B.

It must be a personal property such as a​ copyright, patent, or franchise.

C.

It must have a determinable useful​ life, and the life must be longer than one year.

D.

It must not be used in business or held to produce income.

E.

It is not​ inventory, stock in​ trade, or investment property.

F.

It must be used in business or held to produce income.

Answer 1

Conditions that must be satisfied by a property to be considered depreciable

A. It must be something that wears out, decays, gets used up, becomes obsolete, or loses value from natural causes.

C. It must have a determinable useful life, and the life must be longer than one year.

E. It is not inventory, stock in trade, or investment property.

F. It must be used in business or held to produce income.

The above mentioned conditions must be satisfied by a fixed asset to be considered for depreciation.