Do you include opportunity cost of the capital investment wh investment, building, included, capital, initial

spreads

Lets say you buy a building for $500,000 and there is $250,000 of opportunity cost that is included when you figure out the total initial outlay. When you depreciate the asset each year is depreciation based on the $500,000 or $750,000?

anshultongia

To my knowledge, Opportunity Costs are never accounted for in Financial Accounting. Hence, will not be included for depreciation as well.
However, the returns you get on your equity of $500,000, would be your cost of equity. You could subtract your opportunity cost of capital from there to get your Economic Profit.