Which of the following assets would be subject to cost recovery?
A)A painting by Picasso hanging on a doctor's office wall.
B)An antique vase in a doctor's waiting room.
C)Improvements to a parking lot used by a doctor's patients.
D)a. ,b. ,and c.
E)None of the above.

Question

Quizplus · Accepted Answer

Cost recovery refers to the depreciation of assets used for business or income-producing activities over their useful lives. Out of the given options, only improvements to a parking lot used by a doctor's patients would be subject to cost recovery. The painting and the vase are not used for business or income-producing activities and hence would not be subject to cost recovery.

Which of the Following Assets Would Be Subject to Cost