Which one of the following statements about group depreciation is true?
A)When assets are sold, losses will be recognized, but not gains.
B)This method is used for groups of dissimilar assets.
C)Different assets in the group will have different depreciation rates.
D)Only one accumulated depreciation account is necessary for the whole group.

Question

Quizplus · Accepted Answer

Group depreciation involves depreciating a group of assets as a single asset, which simplifies accounting by requiring only one accumulated depreciation account for the entire group. This method is typically used for similar assets with similar useful lives and depreciation rates, not for dissimilar assets with different rates.

Which One of the Following Statements About Group Depreciation Is