Final answer:
The statement is true; the total depreciation of an asset over its life cannot exceed its depreciable base, which is the cost minus the estimated salvage value.
Step-by-step explanation:
The statement that total depreciation over an asset's life cannot exceed an amount equal to cost minus estimated salvage value is A. True. Depreciation is the accounting process of allocating the cost of a tangible asset over its useful life. The purpose of depreciation is to match the cost of the asset with the revenue it generates over time. The cost of the asset minus its estimated salvage value is the total amount that can be depreciated over the asset's useful life. By definition, an asset cannot be depreciated for more than its depreciable base, which is the cost of the asset minus its estimated salvage value at the end of its useful life.