Equipment might be depreciated over 15 years because

Question

Quizplus · Accepted Answer

Equipment is depreciated over a certain period of time in order to allocate its cost over the period it is expected to contribute to the company's revenue generation. Depreciating equipment over 15 years indicates that it is expected to generate revenue for the company over that period of time. This is the primary reason for equipment depreciation rather than its market value or income tax provisions.

Equipment Might Be Depreciated Over 15 Years Because