The factors effecting the amount of depreciation are:

Historical Cost, Expected Useful Life & Estimated Residual Value

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Historical Cost, Expected useful life & Actual Residual Value

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Historical Cost, Actual Useful Life & Estimated Residual Value

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Historical Cost, Actual Useful Life & Actual Residual Value

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Solution

The correct option is A Historical Cost, Expected Useful Life & Estimated Residual Value
The factors that affect the amount of depreciation are:
1. Historical cost - it is also known as purchase cost, original cost or acquisition cost.
2. Useful life - Useful life is either the period over which a depreciable asset is expected to be used by the enterprise; or the number of production of similar units expected or hours worked to be obtained from the use of the asset by the enterprise. Determination of the useful life is a matter of estimation and is normally based on various factors including experience with similar types of assets.
3. Estimated Residual Value - The estimated residual value of a depreciable asset implies the value expected to be realized on its sale or exchange on the expiry of its useful life.

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