Answer
Before the amount of depreciation charge can be computed, these basic questions must be answered:
i. What is the asset’s useful life?
ii. What is the depreciation base to be used for the asset?
iii. What method of cost apportionment is best for this asset?
Work Step by Step
The accounting for depreciation requires a continuous series of entries to charge a fixed asset to expense, and eventually to derecognize it.
