Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Fundamental Accounting Equation

Financial Accounting

1. Introduction to Accounting

Fundamental Accounting Equation

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following is NOT included when calculating the depreciable basis for real property?

Title insurance costs

Purchase price of the building

The cost of land

Legal fees related to the purchase

Previous problemNext problem

Verified step by step guidance

Understand the concept of 'depreciable basis': The depreciable basis of an asset is the portion of its cost that can be depreciated over time. For real property, this typically includes costs directly related to acquiring and preparing the property for use, excluding non-depreciable items like land.

Identify the components of the depreciable basis: The depreciable basis for real property includes costs such as the purchase price of the building, title insurance costs, and legal fees related to the purchase. These are all directly tied to the acquisition and preparation of the building for use.

Recognize that land is not depreciable: Land is considered a non-depreciable asset because it does not wear out, become obsolete, or lose value over time in the same way that buildings or equipment do. Therefore, the cost of land is excluded from the depreciable basis.

Analyze the options provided: Review each item listed in the problem. Title insurance costs, the purchase price of the building, and legal fees related to the purchase are all included in the depreciable basis. However, the cost of land is not included.

Conclude which item is NOT included: Based on the analysis, the cost of land is the correct answer because it is excluded from the depreciable basis for real property.