Question

Loss of property value as a result of age, physical deterioration, or functional or economic obsolescence, and it may also be treated as an expense for income tax purposes?

A. Appreciation
B. Equity
C. Depreciation
D. Capital gain

Answer 1

Depreciation is the loss of property value due to age, physical deterioration, or obsolescence, and it can be treated as an expense for income tax purposes.

Step-by-step explanation:

The subject of this question is Business.

The correct answer to the question is Depreciation.

Depreciation refers to the loss of property value due to factors such as age, physical deterioration, or functional or economic obsolescence. It is an accounting method used to allocate the cost of an asset over its useful life. Depreciation can also be treated as an expense for income tax purposes, allowing individuals or businesses to deduct a portion of the asset's value as an expense each year.