A company spends $15 million dollars for an office building. Over what period should the cost be written off?

Question

Quizplus · Accepted Answer

The cost of the office building should be depreciated over its useful life, which can be determined by the company's accounting policies and industry standards. This ensures that the cost is allocated appropriately over the period in which the building generates economic benefits for the company. Options A, B and D are incorrect as they do not follow generally accepted accounting principles.

A Company Spends $15 Million Dollars for an Office Building