When low-cost depreciable assets with similar characteristics, service lives, and residual values are acquired, which depreciation method should be used?
A)composite depreciation
B)impairment depreciation
C)group depreciation
D)such assets should not be depreciated

Question

Quizplus · Accepted Answer

Group depreciation is the most appropriate method to use when low-cost depreciable assets with similar characteristics, service lives, and residual values are acquired. This method allows for the pooling of assets into groups and the calculation of depreciation based on the combined cost, life, and salvage value of the group, rather than on each individual asset. This simplifies the process of calculating and recording depreciation and results in a more accurate reflection of the group's overall depreciation expense.

When Low-Cost Depreciable Assets with Similar Characteristics, Service Lives, and Residual