In order to calculate depreciation, the cost of the asset, the estimated useful life, and the estimated residual value of the asset must be known.

Name: In order to calculate depreciation, the cost of the asset, the estimated useful life, and the estimated residual value of the asset must be known.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This statement is true. Depreciation is calculated by taking the cost of the asset, subtracting the estimated residual value, and dividing that difference by the estimated useful life of the asset.

In Order to Calculate Depreciation, the Cost of the Asset