Asked by Manuel De Sousa on May 31, 2024
Verified
All of the following are needed for the calculation of straight-line depreciation except
A) cost
B) residual value
C) estimated life
D) units produced
Straight-Line Depreciation
An arrangement for apportioning the financial burden of a tangible asset equally over its viable years.
Residual Value
The projected value remaining for an asset at the conclusion of its operational lifespan.
Estimated Life
The projected period over which an asset is expected to be useful in the operations of a business for depreciation purposes.
- Cultivate the proficiency to quantify depreciation employing multiple tactics and understand the elements that steer the choice of methodology.
- Apprehend the theory behind depreciable life, salvage value, and how these factors affect the computation of depreciation.
Verified Answer
CI
Christine IdrovoJun 01, 2024
Final Answer :
D
Explanation :
Straight-line depreciation is calculated based on the cost of the asset, its estimated life, and its residual value. The number of units produced is not a factor in straight-line depreciation.
Learning Objectives
- Cultivate the proficiency to quantify depreciation employing multiple tactics and understand the elements that steer the choice of methodology.
- Apprehend the theory behind depreciable life, salvage value, and how these factors affect the computation of depreciation.
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