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  3. 1) when a business incurs costs on a depreciable a

1) When a business incurs costs on a depreciable asset what are 3 main criteria...

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Accounting

1) When a business incurs costs on a depreciable asset what are 3 main criteria to use when determining if you are to expense or capitalize the cost? 2) Your company purchases a work truck for $30,000 in 2020 which is part of class 10. (30%). If you follow the half year rule (50% amortization in first year) what is the total depreciation you will have taken by the end of 2023? 3) Based on the above question what is the net book value of the vehicle at the end of 2023? 4) If you sell the vehicle in 2024 for $12,000, do you have a gain or loss? And by how much? 5) What happens if you sell the vehicle for more than what you bought it for? Is it all a gain?

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