Parking garages, $500,000 printing presses, privately owned warehouses, and oil-well drilling platforms are depreciated over time rather than expensed in the year they are purchased. How are these classified?

Question

Quizplus · Accepted Answer

These items are considered major equipment, as they are long-term and expensive assets used in the operation of a business that provide benefits for multiple years. Depreciation allows for the cost of these assets to be spread over their useful lives.

Parking Garages, $500,000 Printing Presses, Privately Owned Warehouses, and Oil-Well