Which of the following sets of factors is needed to calculate depreciation on plant and equipment?
A)the asset's acquisition cost, replacement cost, and its estimated residual value
B)the estimated residual value of the asset, its replacement cost, and its market value
C)the asset's replacement cost, its estimated life, and its estimated residual value
D)the estimated life of the asset, its acquisition cost, and its estimated residual value

Question

Quizplus · Accepted Answer

To calculate depreciation on plant and equipment, the essential factors include the asset's acquisition cost (initial cost), its estimated life (how long it is expected to be useful), and its estimated residual value (the value at the end of its useful life). These elements are used in various depreciation methods to allocate the cost of the asset over its useful life.

Which of the Following Sets of Factors Is Needed to Calculate