Which one of the following will impact the amount of depreciation expensed throughout the life of plant assets?
A)The amount of capitalized cost.
B)Maintenance costs throughout the asset's useful life.
C)The expected cost of a replacement asset.
D)The current market value.

Question

Quizplus · Accepted Answer

The amount of capitalized cost will impact the amount of depreciation expensed throughout the life of plant assets. Depreciation is calculated based on the cost of the asset, less any estimated salvage value at the end of its useful life. Therefore, the higher the capitalized cost, the higher the amount of depreciation expense will be over the life of the asset.

Which One of the Following Will Impact the Amount of Depreciation