An asset should be depreciated over its:

Question

Quizplus · Accepted Answer

Economic life refers to the period during which an asset generates value for the company. It is the most appropriate period for depreciating the asset as it considers both the asset's usefulness and expected value. Legal life is the period for which the asset is expected to be used in compliance with legal and regulatory requirements, physical life is the actual period the asset lasts before it becomes obsolete, and technical life is the theoretical period the asset should last based on design and maintenance. Therefore, economic life is the best choice for calculating depreciation.

An Asset Should Be Depreciated Over Its