In order to calculate the third year's depreciation on an asset using the sum-of- the-years'-digits method,which of the following must be known about the asset?
A) Its acquisition cost
B) Its estimated salvage value
C) Its estimated useful life
D) All of these must be known.

Question

Quizplus · Accepted Answer

All three factors - acquisition cost, estimated salvage value, and estimated useful life - must be known in order to calculate depreciation using the sum-of-the-years'-digits method.

In Order to Calculate the Third Year's Depreciation on an Asset