Which of the following must be considered in estimating depreciation on an asset for an accounting period?
A) The original cost of the asset
B) Its useful life
C) The decline of its fair value
D) Both the original cost of the asset and its useful life.

Question

Quizplus · Accepted Answer

Depreciation is calculated based on the original cost of the asset and its estimated useful life. The decline of its fair value may be considered in impairment testing but not in estimating depreciation.

Which of the Following Must Be Considered in Estimating Depreciation