If the depreciation method is known, which of the following sets of factors is needed to calculate depreciation on plant and equipment?
A) The asset's historical cost, replacement cost, and its estimated salvage value
B) The estimated salvage value of the asset, its replacement cost, and its market value
C) The asset's replacement cost, its estimated life, and its estimated salvage value
D) The useful life of the asset, its historical cost, and its estimated salvage value

Question

Quizplus · Accepted Answer

To calculate depreciation, you need the asset's historical cost, its useful life, and its estimated salvage value. These factors allow you to determine the amount of depreciation expense to allocate over the asset's useful life.

If the Depreciation Method Is Known, Which of the Following