What is the purpose of depreciation? Does this necessarily mean that the fixed assets purchased are continuing to lose value? Do capital assets receive a preferential tax treatment when they are bought or sold? Describe at least two scenarios where it would be beneficial for a taxpayer not to claim depreciation on a qualified property or piece of equipment?

Answer rating: 100% (QA)

The purpose of depreciation is to match the cost of a productive asset to the revenues earned from u... View the full answer