Answered: Why does the depreciation included in…

Why does the depreciation included in computing the annual cost of annual worth method but not in computing the total cost of present and future worth method ?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 4DQ

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Question

Why does the depreciation included in computing the annual cost of annual worth method but not in computing the total cost of present and future worth method ?

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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