Question

"Which of the following accurately describe depreciable cost? i. The amount of cost a company intends to depreciate over the life of the asset.ii. The acquisition cost of the asset. iii. The fair market value of the asset.iv. The acquisition cost of the asset less the salvage value."A. i and iv.B. iii only C. i. onlyD. iv onlyE. all of the options describe depreciable cost.

Answer 1

D. iv only

Step-by-step explanation:

Depreciable cost is defined as the difference between acquisition cost of the assets less the salvage value.

Depreciable cost = Acquisition cost - Salvage value.

Depreciable cost refers to the amount invested in the asset which will be depreciated over the useful life of the asset. While calculating depreciable cost, salvage value is subtracted from the acquisition cost. Since salvage value reduces the investment made in the asset.