Tax cost recovery methods do not include:
A) Amortization.
B) Depreciation.
C) Depletion.
D) Capitalization.
E) All of the choices are tax cost recovery methods.

Question

Quizplus · Accepted Answer

Capitalization is not a tax cost recovery method, it is a method of accounting for the cost of an asset over its useful life. The other options (amortization, depreciation, depletion) are all tax cost recovery methods that allow for the deduction of the cost of the asset over time for tax purposes.

Tax Cost Recovery Methods Do Not Include