Question 1 1 point d Specify a personal asset that could be

Question 1 (1 point) d Specify a personal asset that could be considered a capital asset. Why would you consider this a capital asset? in your opinion, which depreciation method is most appropriate for this asset? Why?

Solution

Any significant personal asset which gives benefit over a long time to an individual is considered as a Capital Asset.

Capital asset of an individual can be vehicle, residential property , investment in stocks , land, piece of art etc.

Tangible assets (Except Land) are depreciated , normally using straight line method.

Other assets like stock and other investments are not depreciated

Straight line depreciation is normally used because the assets are uniformly used.