Buildings are generally given what depreciable lives under tax systems?
ALonger than others
BShorter than computers
CJust one single year
DHaving no life at all
Answer & Solution
Correct answer: A. Longer than others
Many tax systems prescribe longer depreciable lives for buildings and land improvements.
Keep practising Depreciation and Amortisation
Browse all Depreciation and Amortisation questions for CA Foundation, or explore more Accounting topics.
Related questions
How does depreciation expense affect the reported net income?Depletion is most used in which group of industries?Depletion is the using up of natural resources by which activity?Cost depletion allocates the cost of a resource in proportion to what?Pooling of similar assets bought in one year helps tax systems to?For tax depreciation, bare land generally receives?A tax system that allows a fixed percentage of cost each year is called?Which cost forms part of the depreciable basis of an asset?