Which of the Following Assets Would Not Be Allowed a Depreciation

question 19

Multiple Choice

Which of the following assets would not be allowed a depreciation deduction?
I.A business computer used to process payroll and maintain a company's general ledger.
II.A personal residence of a taxpayer.
III.A building rented out for the production of rental income.
IV.A yacht rented to a fishing party.
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• A)Only statement II is correct.
• B)Statements II and IV are correct.
• C)Only statement I is correct.
• D)Statements I and III are correct.
• E)All of the assets are depreciable.

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Definitions:

Total Costs

The complete sum of all expenses, direct and indirect, incurred in producing a good or delivering a service.

Finished Goods

Finished Goods are products that have completed all stages of production and are ready for sale to customers.

FIFO Process Cost Method

An accounting method for valuing inventory and the cost of goods sold based on the assumption that the earliest goods purchased or manufactured are sold first.

Equivalent Units

A method used in process costing that converts partially completed units into a number of fully completed units.