Depreciation is question's topic, pls. To reroof a rental it cost $1,500 in materials, and $2,000 in labor. What should be depreciated? $1,500? $2,000? Or $3,500, pls?

1210

2 Best answers

Level 13

Jun 4, 2019 4:05:07 PM

You are buying a "roof", not its cost components. So its cost to you is $3,500.

Tom Young

Level 1

Mar 28, 2021 12:33:54 AM

Thanks, Tom. I appreciate your answer. Makes sense with your explanation.

Level 13

Jun 4, 2019 4:05:07 PM

You are buying a "roof", not its cost components. So its cost to you is $3,500.

Tom Young

Level 1

Mar 28, 2021 12:33:54 AM

Thanks, Tom. I appreciate your answer. Makes sense with your explanation.