An asset's cost plus the amounts you paid for items such as sales tax, freight charges, and installation and testing fees is referred to as the ___________________.

Question

Quizplus · Accepted Answer

The cost of an asset plus the additional expenses incurred to acquire and prepare it for use, such as installation or testing fees, is known as the depreciable basis. This amount is used to calculate the asset's depreciation over its useful life, which represents the cost of the asset as it wears out over time. Therefore, the correct answer is D.

An Asset's Cost Plus the Amounts You Paid for Items