Which of the Following Would Be Allowed a Depreciation Deduction

question 65

Multiple Choice

Which of the following would be allowed a depreciation deduction?
I.Inventory.
II.Land acquired as an investment.
III.Residence used as rental property.
IV.Airplane used by company controller to attend accounting conference.
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• A)Only statement III is correct.
• B)Only statement IV is correct
• C)Statements III and IV are correct.
• D)Statements II, III, and IV are correct.
• E)All of the assets are depreciable.

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Definitions:

Huck Fastener

A commonly used production line fastener used in place of a nut and bolt that ensures more accurate clamping pressure. Uses air-over-hydraulic pressure to establish stud clamping force before locking with a crimp-type fastener. Often robotically installed on an assembly line. Less commonly used in service shops because of the bulk and awkwardness of the installation tooling, so Huck fasteners are often replaced with nuts and bolts.

Suspension Repairs

The process of fixing or replacing components of a vehicle's suspension system to ensure proper handling and comfort.

Grade 8

A classification indicating high-strength fasteners, typically made from alloy steel and used in demanding applications.

Hex Socket

A tool fitting that features a hexagonal shape designed to drive bolts and screws with hexagonal heads.