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CHAPTER 10—Property Acquisition & Cost Recovery Cost Recovery • Businesses must capitalize the cost of assets w/ a useful life of more than 1 year on the balance sheet rather than expense the cost immediately • Aka depreciation (tangible property), amortization (intangibles), or depletion (natural resources)—depending upon the underlying nature of asset o Depreciation—deducting the cost of tangible personal & real property over a specific period of time (trucks, equipment, buildings, computers) § Land is NEVER depreciable b/c it is not subject to wear, tear, & obsolescence § Personal—equipment, computers, tractor that is used in a business § Real—la