The depreciable cost of a long-term asset is its original cost minus obsolescence.

Question

Quizplus · Accepted Answer

The depreciable cost of a long-term asset is the original cost minus any salvage value or residual value at the end of its useful life, not obsolescence. Obsolescence refers to the decrease in value or usefulness of an asset due to technological advancements or changes in the market, but it is not directly related to the calculation of depreciation expense.

The Depreciable Cost of a Long-Term Asset Is Its Original