Question

What are the three factors involved in the depreciation process?

1) Depreciation base, useful life, and risk of obsolescence
2) Depreciation base, market value, and risk of obsolescence
3) Depreciation base, useful life, and market value
4) Depreciation base, useful life, and cost of repairs

Answer 1

The three factors involved in the depreciation process are the depreciation base, useful life, and market value.

Step-by-step explanation:

The three factors involved in the depreciation process are:

1. Depreciation base: This refers to the original cost of the asset. It is the basis for determining the amount of depreciation.
2. Useful life: This refers to the estimated period of time over which the asset will be used and generate revenue. It determines the rate at which the asset will depreciate.
3. Market value: This refers to the current value of the asset in the market. It is important in determining the remaining value of the asset after depreciation.