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Depreciation

Depreciable a...

Question

Depreciable amount of a depreciable asset is ____________.

A

Expenditure incurred to acquire the asset

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B

Its historical cost, or other amounts substituted for historical cost in the financial statements, less the estimated residual value

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C

Its market value

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D

All of the above

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Solution

The correct option is B Its historical cost, or other amounts substituted for historical cost in the financial statements, less the estimated residual value
Option B is the correct One.
Depreciable amount =Cost of assets + Installation expenses -residual value

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