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Might it be appropriate for company A to depreciate an instrument over six years while Company...

Might it be appropriate for company A to depreciate an instrument over six years while Company B appropriately chooses a depreciable life of eight years? Explain

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Answer #1

Yes it is appropriate for one company to depreciate an instrument differently than other company because depreciation methods are based upon various assumptions and they can be modified accordingly due to various circumstances in the company.

These instruments can be used differently in both the companies in production of various products and their life is accordingly estimated according to their needs in both the organisation so the depreciation are generally assumed based upon their uuse and they can be estimated differently by different companies according to their use so the given statement is true.

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