The allocation base of an asset refers to which of the following?
A) The asset's initial capitalized cost.
B) The number of years over which the asset's cost will be allocated.
C) The asset's initial capitalized cost minus residual value.
D) The method used to allocate the asset's cost across years.

Question

Quizplus · Accepted Answer

The allocation base of an asset refers to the asset's initial capitalized cost minus its residual value. This is the amount over which depreciation or amortization is spread over the asset's useful life.

The Allocation Base of an Asset Refers to Which of the Following