To apply the units-of-activity method, all of the following information is needed except the:
A)original cost.
B)estimated residual value.
C)estimated useful life.
D)estimated usage.

Question

Quizplus · Accepted Answer

The units-of-activity method of depreciation requires the original cost, estimated residual value, and estimated usage to calculate depreciation. It does not require the estimated useful life in years, as it is based on the actual usage of the asset.

To Apply the Units-Of-Activity Method, All of the Following Information