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Which of the following is not a requirement for an asset to be depreciable? (a) It must have a life longer than 1 year. (b) It must have a basis (initial purchase plus installation cost) greater than $1,000. (c) It must be held with the intent to produce income. (d) It must wear out or get used up.

User Atevm
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Answer:

option (b) It must have a basis (initial purchase plus installation cost) greater than $1,000

Step-by-step explanation:

The correct answer for the given question that is the option which is not the requirement of depreciation is option b) "It must have a basis (initial purchase plus installation cost) greater than $1,000".

The depreciation means the loss in the value of an object or equipment or so due to the wear and tear caused to the item in due course of time of its usage.

Thus, from the definition it can be concluded that the option b) is not an requirement for an asset to be depreciable.

User Shilaghae
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