Question

which of the following factors determine depreciation? (check all that apply.) multiple select question. current market value of asset appraisal of asset salvage value cost of asset book value useful life

Answer 1

Depreciation is determined by the cost of the asset, its useful life, and its salvage value. These factors are essential for calculating the depreciation expense over the asset's lifespan. Market value, appraisal, and book value are not direct factors in depreciation calculations.

Step-by-step explanation:

Depreciation of an asset is determined by several factors. Not all factors apply to the calculation of depreciation for every type of asset, but generally, the following are considered:

• Cost of the asset: This is the initial price paid to acquire the asset, including any costs necessary to get the asset ready for use.
• Useful life: The estimated time period that the asset is expected to be used in the operations of a business.
• Salvage value: The estimated residual value of the asset after the end of its useful life.

The current market value, appraisal of asset, and book value are not direct factors in calculating depreciation, although they may be relevant for other accounting evaluations.