Which method of valuing capital assets is more relevant for tax purposes?

Question

Quizplus · Accepted Answer

For tax purposes, historical cost is the most relevant method of valuing capital assets. This is because it reflects the original cost of the asset and does not take into account any appreciation or depreciation that may have occurred over time. Choosing any of the other options would result in either overvaluing or undervaluing the asset for tax purposes.

Which Method of Valuing Capital Assets Is More Relevant for Tax