Depreciation methods in economical engineering, Other Engineering

Assignment Help:

Depreciation Methods

Technically speaking, U.S. tax law permits deduction from taxable income of a reasonable allowance for wear or tear, natural decay or decline, exhaustion, or obsolescence of property used in a trade or business or of property held for producing income. Specifically, the Internal Revenue Service requires that the following requirements be met for depreciable property:

1. It must be used in business or held for the production of income

2. It must have a life that can be determined, and that life must be longer than a year.

It must be something that wears out, decays, gets used up, becomes obsolete, or lose value from natural causes.

Depreciable property may be tangible or intangible. Tangible property can be seen or touched and can be categorized as personal or real. Personal property is goods such as cars, trucks, machinery, furniture, equipment, and anything that is tangible except real property. Real property is land and generally anything that is erected on, growing on, or attached to it. Land by itself, does not qualify for depreciation, but the buildings, structures, and equipment do qualify. In contrast intangible property cannot be seen or touched but has value to the owner; it includes copyright, brands, software, goodwill, formulas, patents, trademarks, licenses, information bases, and franchises.


Related Discussions:- Depreciation methods in economical engineering

Auto cad, Assignment Title: Die Press Assembly Drawing The objective of th...

Assignment Title: Die Press Assembly Drawing The objective of this assignment is to demonstrate the following concepts of design. • Extrude • Revolve • Fillet • Dimensioning • To

Poultry numericals, design cage type poultry house for 1000 lying birds als...

design cage type poultry house for 1000 lying birds also specify the equipments for feeding,watering,lighting and protecting birds.

Vlsi, Working of bi- CMOS invertor in vlsi

Working of bi- CMOS invertor in vlsi

Agricultural engineering , Agricultural engineering does not easily mean on...

Agricultural engineering does not easily mean only fruits and vegetables formed from the fields. Agriculture has come up with a dissimilar  look now. When you open a paouch of chip

Events and its efffeccts, i need to prepare my aasingment for financial dat...

i need to prepare my aasingment for financial data analysis for that i need 10 business events

Design of a fermenter, I have a fermenter case study which needs to be comp...

I have a fermenter case study which needs to be completed in the next 16 hours.

Commented carbides, Q. What are the commented carbides? How are they proces...

Q. What are the commented carbides? How are they processed? Ans. These are very important products of powder metallurgy and finds wide applications as cutting tools, wir

Vlsi, how to find out the number of select lines while construcing a mux or...

how to find out the number of select lines while construcing a mux or a demux logic diagram?

Biotechnology engineering project, I want a project which is related to bio...

I want a project which is related to biotech engineering.. Something like designing or inventing .

Risk Management, discuss the values of risk analysis and how it can help in...

discuss the values of risk analysis and how it can help in decision making of project management under conditions of uncertainty

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd