Question

Which of the following factors should be considered while estimating the useful life of a depreciable asset?

• A. Expected physical wear and tear.
• B. Obsolescence.
• C. Legal or other limits on the used of the asset.
• D. All of the above.

Answer 1

The correct option is D All of the above.

While estimating the useful life of a depreciable asset, one must consider the expected physical wear and tear on the assets, change in technology and limits on the use of asset.
All these factors helps in determining the useful life of the asset.