Accounting for IGCSE & O level - Accounting Procedures (Section 23 - No. 31)
Which of the following is considered when calculating the annual depreciation expense?
The cost of the asset
The estimated useful life
The salvage value
The book value of the asset
Explanation
All three factors are used to calculate annual depreciation expense. The book value of the asset is not used because it is calculated as a result of the depreciation expense.
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