When a company invests in equipment, it is not ordinarily allowed to immediately expense the entire cost of the equipment when computing taxable income.

Name: When a company invests in equipment, it is not ordinarily allowed to immediately expense the entire cost of the equipment when computing taxable income.
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Quizplus · Accepted Answer

Typically, companies must capitalize the cost of equipment and then depreciate it over the useful life of the asset, rather than expensing the entire cost immediately for tax purposes.

When a Company Invests in Equipment, It Is Not Ordinarily