The factor that is not relevant in computing depreciation is
A) replacement value.
B) cost.
C) salvage value.
D) useful life.

Question

Quizplus · Accepted Answer

Replacement value is not relevant in computing depreciation because depreciation is the process of allocating the cost of a tangible asset over its useful life, and is not affected by the cost of replacing the asset. Depreciation is based on the initial cost of the asset, its estimated useful life, and its expected salvage value at the end of its useful life.

The Factor That Is Not Relevant in Computing Depreciation Is