Livestock owned by ranchers and farmers and held for resale may be depreciated as a capital expenditure.

Name: Livestock owned by ranchers and farmers and held for resale may be depreciated as a capital expenditure.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Livestock owned by ranchers and farmers and held for resale are considered inventory, not capital assets, and therefore cannot be depreciated. Depreciation is applied to capital assets that have a useful life beyond one year, not to inventory.

Livestock Owned by Ranchers and Farmers and Held for Resale