Tax cost recovery methods do NOT include:
A) Amortization.
B) Capitalization.
C) Depletion.
D) Depreciation.
E) All of the choices are tax cost recovery methods.

Question

Quizplus · Accepted Answer

Capitalization does not involve recovering tax costs over time through deductions, it is a method of expense recognition where the cost of an asset is recorded as a capital expenditure and allocated over the asset's useful life. The other choices, amortization, depletion, and depreciation, are all tax cost recovery methods commonly used to deduct the cost of assets over their useful life.

Tax Cost Recovery Methods Do NOT Include