A specialized piece of equipment closely associated with a mine is most likely to be depreciated over a shorter than normal useful life because the
A)equipment will be fully utilized.
B)income tax laws require that a shorter life be used.
C)equipment contains certain defects.
D)mine is expected to be fully depleted in the shorter length of time.

Question

Quizplus · Accepted Answer

A specialized piece of equipment closely associated with a mine is likely to have a shorter useful life because the mine is expected to be fully depleted in a shorter period of time. Therefore, the equipment will become obsolete along with the mine's depletion, and will not have any usefulness beyond that point. This is why a shorter useful life is applicable in this case.

A Specialized Piece of Equipment Closely Associated with a Mine