Asked by Jayesh Reesaul on Jul 07, 2024
Verified
The relevant factors in computing depreciation do not include:
A) Cost.
B) Salvage value.
C) Useful life.
D) Depreciation method.
E) Market value.
Depreciation
The planned apportionment of a tangible asset's cost over the time it is useful.
Salvage Value
The estimated resale value of an asset at the end of its useful life, important for depreciation calculations.
Market Value
Market value is the current price at which an asset or service can be bought or sold in a marketplace, often influenced by supply and demand dynamics.
- Gain an understanding of depreciation fundamentals, which include the various approaches to calculation and their influence on financial documents.
Verified Answer
LT
lajoie tenzinJul 11, 2024
Final Answer :
E
Explanation :
The relevant factors in computing depreciation include cost, salvage value, useful life, and depreciation method. Market value is not a relevant factor as it relates to the current value of an asset in the open market, whereas depreciation is based on the historical cost and estimated useful life of the asset.
Learning Objectives
- Gain an understanding of depreciation fundamentals, which include the various approaches to calculation and their influence on financial documents.
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