Depreciation refers to a decrease in the value of a durable good caused by
A)an increase in the price level
B)changes in the depreciation allowance
C)wear and tear over time
D)changes in tax law
E)a decrease in its resale value

Question

Quizplus · Accepted Answer

Depreciation is the decrease in value of a durable good over time due to wear and tear, obsolescence, or other factors that make it less valuable. It is not directly affected by changes in the price level, depreciation allowance, tax law or resale value, although these factors may indirectly influence the rate of depreciation.

Depreciation Refers to a Decrease in the Value of a Durable