Tax cost recovery methods do not include:
A) Amortization
B) Capitalization
C) Depletion
D) Depreciation
E) All of these are tax cost recovery methods

Question

Quizplus · Accepted Answer

Capitalization is not a tax cost recovery method. Instead, it is a method of recognizing and reporting an expense as a long-term asset on a company's balance sheet. The other options (amortization, depletion, and depreciation) are all methods of tax cost recovery, which allow businesses to recoup the cost of their assets over time through tax deductions.

Tax Cost Recovery Methods Do Not Include