A company spends $20 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 written off over its useful life, which is typically 20-40 years. This method of accounting is called depreciation and allows the company to spread out the cost of the building over its useful life, rather than taking the entire expense in one year.

A Company Spends $20 Million Dollars for an Office Building