Which of the following sets of factors is needed to calculate depreciation on plant and equipment?
A)The asset's acquisition cost,replacement cost,and its estimated residual value
B)The estimated residual value of the asset,its replacement cost,and its market value
C)The asset's replacement cost,its estimated life,and its estimated residual value
D)The estimated life of the asset,its acquisition cost,and its estimated residual value

Question

Quizplus · Accepted Answer

To calculate depreciation on plant and equipment, the essential factors needed are the asset's acquisition cost (the initial cost to purchase the asset), its estimated residual value (the salvage value at the end of its useful life), and its estimated life (the period over which the asset is expected to be used). These factors are used in various depreciation methods, such as straight-line and declining balance methods.

Which of the Following Sets of Factors Is Needed to Calculate