The cost of depreciable property is not a research and experimental expenditure.

Question

Quizplus · Accepted Answer

Depreciable property refers to tangible assets such as equipment or buildings that lose value over time due to wear and tear or obsolescence. While the cost of acquiring depreciable property can be deducted over time through depreciation, it is not considered a research and experimental expenditure which refers to costs incurred for activities aimed at discovering new knowledge or improving existing products or processes.

The Cost of Depreciable Property Is Not a Research and Experimental