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      Question

      Which is used to determine the actual cash value of

      property at time of loss?
      A appreciation Correct Answer Incorrect Answer
      B Depreciation Correct Answer Incorrect Answer
      C Realization Correct Answer Incorrect Answer
      D Recognition Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      Solution

      Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life and is used to account for declines in value. Businesses depreciate long-term assets for both tax and accounting purposes. For tax purposes, businesses can deduct the cost of the tangible assets they purchase as business expenses; however, businesses must depreciate these assets according to IRS rules about how and when the company can take the deduction

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