Which of the following items are required to calculate depreciation?
I. Estimated residual value
II. Estimated useful life
III. Cost or revalued amount
IV. Method of depreciation

Question

Quizplus · Accepted Answer

All four items (estimated residual value, estimated useful life, cost or revalued amount, and method of depreciation) are required to calculate depreciation accurately. Estimated residual value and estimated useful life are needed to determine the amount of depreciation to be taken each year, while cost or revalued amount and method of depreciation are needed to calculate the depreciation base.

Which of the Following Items Are Required to Calculate Depreciation