What is the depreciable basis ? C It is the cost of capital ( both debt and equity ) that can be depreciated and the cost spread over multiple years of the project . It is the cost of debt ( interest ) that can be depreciated and the cost spread over multiple years of the project . It is the fully installed cost of an asset that taxing authorities allow to be written off for tax purposes . It is the cost of all items expended prior to the decision to accept a project and are added to the cost of the asset and written off for tax purposes .A manager has a choice of depreciation methods , 5 year straight line or 5 year modified accelerated cost recovery system ; which is the most likely choice , and why