Skip to main contentSkip to solution

Factors affecting the calculation of the annual depreciation of an asset are

A. Body shape of the asset

B. Original cost of the asset

C. Scrap value of the asset

D. Useful life of the asset

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 3

Annual depreciation under the straight line method is cost−scrap valueuseful life\dfrac{\text{cost}-\text{scrap value}}{\text{useful life}}.

So the original cost, scrap value and useful life all enter the calculation.

The physical shape of the asset plays no role, so B, C and D only.

Keyboard Shortcuts

  • Left arrow: Previous question
  • Right arrow: Next question
  • S key: Jump to solution
  • Q key: Jump to question