Depreciation commences or continues when
A) The asset has been paid for.
B) The asset is available for use.
C) The asset's fair value can be recovered.
D) The asset is taken out of service.

Question

Quizplus · Accepted Answer

Depreciation begins when the asset is available for use, which means it is ready and in its intended condition to generate economic benefits for the company. The other options do not accurately reflect the beginning or continuation of depreciation.

Depreciation Commences or Continues When