Answer:
Cost, residual value, and service life
Explanation:
The computation of depreciation requires three (3) inputs.
Cost: the acquisition cost of the asset
Residual value: the value at which the asset will be sold
Service life: the number of years the assets will be used by a company (also known as useful life).
Thus 
Physical life will be inappropriate because the physical life includes not only the useful life of the asset in a company, but also the life of the asset when it is sold.
The fair value of an comes into play when the asset is revalued, usually for a sale. Replacement value is similar to fair value as it is the market value of the asset at a given point in time.
Answer:
b. $1300 income
Explanation:
Apportionment rate = 420/1200 square feet = 35% attributable to the boutique.
Amount of income from the boutique would be all the income receipts as reduced by all the qualifying expenses relating to the business.
So, Richard's income from the boutique would be computed as under:
= $10,000 gross income - $2400 supplies expense - Depreciation attributable to boutique i.e 35% of $12,000 - utilities expenses attributable to boutique i.e 35% of 6000
= $10,000 - 2400 - 4200 - 2100
= $1300 income
Brainstorm
I hope it helped you!
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Answer
The answer and procedures of the exercise are attached in a microsoft excel document.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
