Next Saturday, best friend, Sol, and I will have separate acts in a citywide talent contest. But we've just made a _____ with ea
2 answers:
You might be interested in
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.