Question

Total depreciation over an asset's useful life is equal to ___________.

• A. historical cost
• B. cost less salvage value
• C. replacement value less scrap value
• D. discounted value less scrap value

Answer 1

The correct option is B cost less salvage value

Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life. The formula to calculate depreciation is (Total cost of asset- Salvage value)/ Useful life of the asset. Hence, total depreciation over useful life equal to cost less salvage value.