Asked Jan 27, 2020

Discuss the factors that influence the estimation of service life for a depreciable asset.


Expert Answer

Step 1

Fixed asset:

It refers to the long-term assets having a useful life of more than a year which is, acquired by a company to be used in it...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Financial Accounting

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A

Q: Cardinal Company is negotiating to lease a piece of equipment to MTBA, Inc. MTBA requests that the l...

A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period of...


Q: How does an “asset gain or loss” develop in pension accounting? How does a “liability gain or loss” ...

A: Plan assets: Assets which are created, maintained and planned for a specific purpose or benefit is t...


Q: The Cecil-Booker Vending Company changed its method of valuing inventory from the average cost metho...

A: 1.


Q: Ace Inc. produces electronic components for sale to manufacturers of radios, television sets, and di...

A: Case 1The auditor should disclose properly in the financial statements even if the dividend payment ...


Q: Explain the similarities in and differences among depreciation, depletion, and amortization.

A: Depreciation:  It refers to the reduction in the monetary value of fixed tangible assets over its us...


Q: Addison Co. has one temporary difference at the beginning of 2020 of $500,000. The deferred tax liab...

A: Calculate deferred tax liability.


Q: The main categories of cash flow activities on the statement of cash flows are direct and indirect....

A: Definition:


Q: A headline in the Wall Street Journal stated, “Firms Increasingly Tap Their Pension Funds to Use Exc...

A: The difference between the pension assets and pension liabilities is known as excess assets i.e. whe...


Q: Which of the following is not classified as an accounting change by IFRS? a.    Change in accounting...

A: International Financial Reporting Standard (IFRS): An international standard for identifying, analyz...