Depreciation of the capital stock occurs due to:
A)machines deteriorating.
B)real estate rising in value.
C)bonds falling in value.
D)all of the above.

Question

Quizplus · Accepted Answer

Depreciation is the decrease in value of the physical capital stock due to wear and tear, obsolescence, or other factors. Therefore, machines deteriorating is the only option listed that represents a decrease in value of physical capital. Real estate rising in value and bonds falling in value do not represent depreciation of the physical capital stock.

Depreciation of the Capital Stock Occurs Due To