In determining depreciation amounts, you need to know or establish:
A) Useful life, salvage value, residual value
B) Residual value, salvage value, interest rate percentage.
C) Useful life, depreciation method, residual value

Question

Quizplus · Accepted Answer

The useful life of the asset, the chosen depreciation method, and the residual value need to be established in order to determine the depreciation amount. Salvage value is another term for residual value, so it is included in the list of necessary information in option C. Interest rate percentage is not relevant to determining depreciation amounts.

In Determining Depreciation Amounts, You Need to Know or Establish