Machinery might be depreciated over 10 years because

Question

Quizplus · Accepted Answer

Depreciation is the process of allocating the cost of long-term assets to expense over their useful lives. Machinery is expected to provide economic benefits to the company over a number of years. Therefore, it is appropriate to depreciate machinery over its useful life, often over 10 years, in this case, because it can generate revenue for that period. Options A, B, and D do not adequately explain why machinery would be depreciated over 10 years.

Machinery Might Be Depreciated Over 10 Years Because