If a new SUV that costs $50,000 and weighing 6,500 pounds is placed in service in 2012, the maximum Section 179 expense that can be taken is: $0 $10,960 $25,000 $50,000
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
If a new SUV that costs $50,000 and weighing 6,500 pounds is placed in service in 2012, the maximum Section 179 expense that can be taken is:
- $0
- $10,960
- $25,000
- $50,000
- If a new passenger auto that costs $50,000 and weighs 5,000 pounds is placed in service in 2012, the maximum
depreciation that can be taken is: - $0
- $11,160
- $25,000
- $50,000
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