What is provided for by "accruals for depreciation"?

Accruals for depreciation refer to the systematic allocation of the cost of a tangible asset over its useful life. This practice is crucial in accounting as it allows businesses to match the expense of using an asset with the revenue it generates over time. Specifically, recapture of capital comes into play when an asset is sold, and the depreciation that has been accrued needs to be accounted for in terms of tax implications.

When a property is sold for more than its depreciated value, the Internal Revenue Service may require the seller to "recapture" some of the previously deducted depreciation, potentially impacting taxable income. This relates directly to the concept of recapturing previously allocated costs, thus making it the correct answer in the context of depreciation accruals.

The other options, while related to finance and real estate, do not directly tie into the concept of depreciation accruals in the same way. Future investments might involve decisions about how to allocate capital based on projections rather than current asset values. Repair budgets pertain to the costs associated with maintaining an asset, but do not address how the asset's value decreases over time due to wear and tear. Market trends may influence property values, but they do not deal with the accounting treatment of depreciation. This makes