A company spends $10 million dollars for an office building. Over what period of time should the cost be written off?

Name: A company spends $10 million dollars for an office building. Over what period of time should the cost be written off?
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Question

Quizplus · Accepted Answer

The cost of an office building should be written off over its useful life, according to the principle of depreciation. This allows the cost to be spread out over the period during which the building is expected to generate economic benefits for the company.

A Company Spends $10 Million Dollars for an Office Building