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Discuss the Requirements in Order for Startup Expenditures to Be

question 84

Essay

Discuss the requirements in order for startup expenditures to be amortized under § 195.


Definitions:

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal indicating that the ledger accounts are properly balanced.

Residual Value

The estimated value that an asset will have at the end of its useful life.

Depreciation

The systematic allocation of the cost of a tangible asset over its expected useful life, reflecting its consumption, wear and tear, or obsolescence.

Accumulated Depreciation

The total amount of an asset's cost that has been allocated as depreciation expense over its useful life, reducing its book value on the balance sheet.

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