What is depreciation?
A)The projected reduction in asset value due to wear and tear or obsolescence.
B)A non-tax deductible expense that depreciates household assets.
C)The projected increase in asset value due to capital gains.
D)A non-tax deductible expense that depreciates household income.
E)None of the above.

Question

Quizplus · Accepted Answer

Depreciation refers to the projected reduction in asset value over time due to wear and tear or obsolescence. This reduction can be calculated and documented for tax and accounting purposes, and can be used to offset taxable income.

What Is Depreciation