Question

Bryan Brown of Bryan Brown Associates purchased a computer for $1,800 and expensed it for tax purposes. The $1,800 is a cost. True or False

A) True
B) False

Answer 1

The statement is A) true; the $1,800 spent on a computer by Bryan Brown Associates and expensed for tax purposes represents a cost.

Step-by-step explanation:

The statement that Bryan Brown of Bryan Brown Associates purchased a computer for $1,800 and expensed it for tax purposes, and that the $1,800 is a cost, is true.

In accounting, a cost is defined as the cash or cash equivalent value given up for goods and services that bring a current or future benefit to the organization. When a business purchases an asset like a computer, it is typically considered a capital expense.

However, depending on the size of the business and the applicable tax laws, it may be possible to expense the entire cost in the year of purchase rather than capitalizing and depreciating the asset over its useful life.