When considering depreciation, is the number of years an asset should be depreciated usually just a random number of years, or is it usually based in reality (like ten years before we expect to replace a car, etc.)?

When considering depreciation, is the number of years an asset should be depreciated usually just a random number of years, or is it usually based in reality (like ten years before we expect to replace a car, etc.)?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8MC: An accelerated depreciation method that takes more expense in the first few years of the assets life...

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Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation

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