Question

The time period when the asset will be used is called

• A. Salvage Value
• B. Estimated Useful Life
• C. Depreciable Base
• D. Amortization Period

Answer 1

Answer:

B. Estimated Useful Life

Factors Affecting the Amount of Depreciation:

• Cost of the asset = Purchase price + Transport + Installation + Brokerage, etc.

• Estimated Useful Life = Time period the asset will be used.

• Scrap or Residual Value = Estimated value at the end of its useful life.

• Depreciation Method = How depreciation is charged (Straight Line or WDV method)