Which of the following would be allowed a depreciation deduction?
I.Inventory.
II.Land acquired as an investment.
III.Residence used as rental property.
IV.Airplane used by company controller to attend accounting conference.

A)Only statement III is correct.
B)Only statement IV is correct
C)Statements III and IV are correct.
D)Statements II, III, and IV are correct.
E)All of the assets are depreciable.

Question

Which of the following would be allowed a depreciation deduction?
I.Inventory.
II.Land acquired as an investment.
III.Residence used as rental property.
IV.Airplane used by company controller to attend accounting conference.
​
A)Only statement III is correct.
B)Only statement IV is correct
C)Statements III and IV are correct.
D)Statements II, III, and IV are correct.
E)All of the assets are depreciable.

Quizplus · Accepted Answer

III and IV are correct because a residence used as rental property and an airplane used for business purposes are both considered assets used in a trade or business and can be depreciated. Inventory (I) cannot be depreciated because it is considered current assets and land (II) cannot be depreciated because it is not a depreciable asset.

Which of the Following Would Be Allowed a Depreciation Deduction