Question

What factors are to be considered in the measurement of depreciation?​

Answer 1

Answer:

There are four main factors that affect the calculation of depreciation expense: asset cost, salvage value, useful life, and obsolescence.

Answer 2

The Factors to be considered in measuring depreciation are salvage value, asset cost, obsolescence and useful life.

Explanation:

• Cost- Net purchase price. All reasonable and necessary expenditures to get the asset in place and ready for use.

• Residual value- (salvage or disposal value). An asset's estimated net scrap, salvage, or trade-in value as of the estimated date of disposal.

• Useful life- This is the time period over which the company expects that the asset will be productive

• Obsolescence- Over a period of time, every asset loses its novel value. A new alternative can always be developed for replacing the asset and its functions.