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:

Commercial Letter

a written document used in business transactions, often to communicate formally between companies or organizations.

Cash Advance

A short-term loan or credit card feature allowing individuals to withdraw cash up to a certain limit, often subject to high interest rates and fees.

Exporter

A person, company, or country that sells goods or services to buyers in another country.

Open Account Agreement

A financial arrangement between two parties allowing for the buying and selling of goods and services on credit, without requiring prepayment.