In calculating depreciation and amortization for tangible assets, functional factors that limit service lives include:
A)ordinary wear and tear from use.
B)chemical action such as rust.
C)the effects of wind and rain.
D)obsolescence.
E)none of the above.

Question

Quizplus · Accepted Answer

Functional factors that limit service lives include obsolescence, which refers to the asset becoming outdated or less useful due to technological advancements or changes in market demand.

In Calculating Depreciation and Amortization for Tangible Assets, Functional Factors