Question

Which of the following estimstes are not always required when calculating deoreciation expense?

depreciation

Which of the following estimates are not always required when calculating depreciation expense?
Select all that apply.
A- Depreciation rate
B- Usesful life
C- Depreciation method
D- Salvage Value
E- None of the above

Answer 1

Answer :

A) Depreciation Rate is not always required when calculating depreciation expense.

Explanation:

Because there are several depreciation method that does not required depreciation rate to calculate depreciation expense.The methods are

* Straight line method = Cost - Salvage value / Useful life.

* Double declining balance method = Cost/ Useful life * 2

* Unit of production method = Cost - Salvage value/ Estimated total output.

* Sum of the years digits = ( Remaining life / Sum of the years digits ) * (Cost - Salvage value)

Therefore Useful life , Depreciation Method , Salvage Value are mostly required for calculating depreciation expense.