An asset that has an estimated physical life of six years and an estimated service life of four years should be depreciated over:
A) Four years.
B) Five years.
C) Six years.
D) Any of these choices can be chosen by management.

Question

Quizplus · Accepted Answer

The asset should be depreciated over its estimated service life of four years, as depreciation is based on the period the asset is expected to be used in operations, not its physical life.

An Asset That Has an Estimated Physical Life of Six