Equipment might be depreciated over 20 years because

Question

Quizplus · Accepted Answer

Equipment is typically depreciated over the time period in which it is expected to help generate revenue for the company. Depreciation is a way to allocate the cost of an asset over its useful life, so it can show up as an expense on the income statement and lower the company's taxable income. It is not necessarily based on the asset's market value or the time it takes to pay for it, but rather on the expected revenue it will help generate.

Equipment Might Be Depreciated Over 20 Years Because