Answered: Capitalized cost of any property is…

Engineering

Civil Engineering

Capitalized cost of any property is equal to:

Fundamentals Of Construction Estimating

4th Edition

ISBN:9781337399395

Author:Pratt, David J.

Publisher:Pratt, David J.

Chapter16: Budget Estimating

Section: Chapter Questions

Problem 2RQ

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Concept explainers

Tax Significance of Depreciation

While calculating taxes, depreciation is the method used to allocate the cost of a tangible or immovable asset over the useful life of an asset. In other words, allocate part of that cost to the times when tangible assets help generate revenue or sales. By recording the depreciation of an asset, depreciation reduces the amount of taxes a company or business pays in tax deductions.

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Capitalized cost of any property is equal to: annual cost first cost + interest of the first cost first cost + cost of perpetual maintenance first cost + salvage value

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