Which of the following must be considered in estimating depreciation on an asset for an accounting period?
A) only the original cost of the asset
B) only the asset's useful life
C) both the original cost of the asset and its useful life
D) the decline in its fair market value

Question

Quizplus · Accepted Answer

Depreciation is based on both the original cost of the asset and its useful life. The decline in fair market value is not a factor in depreciation.

Which of the Following Must Be Considered in Estimating Depreciation