Asked by
Michael Hirsch
on Nov 14, 2024
Verified
When estimating the useful life of an asset accountants do not consider
A) the cost to replace the asset at the end of its useful life.
B) obsolescence factors.
C) expected repairs and maintenance.
D) the intended use of the asset.
Useful Life
The estimated duration of time an asset is expected to be useful and productive for the purpose it was acquired.
Replace The Asset
The process of substituting an existing asset with a new or improved version, often due to obsolescence, wear, or technological advances.
Obsolescence Factors
Elements that contribute to the decline in value and usefulness of assets over time, affecting their depreciation.
- Understand the contribution of salvage value and useful life in computing depreciation amounts.
- Illustrate how different factors like salvage value, cost, and useful life affect depreciation calculations.
Verified Answer
ES
Learning Objectives
- Understand the contribution of salvage value and useful life in computing depreciation amounts.
- Illustrate how different factors like salvage value, cost, and useful life affect depreciation calculations.