Question

To measure depreciation for a tangible long-lived asset, all of the following must be known except:

a) current market value
b) estimated residual value
c) historical cost
d) estimated useful life

Answer 1

To measure depreciation for a tangible long-lived asset, the current market value is not necessary.

Step-by-step explanation:

To measure depreciation for a tangible long-lived asset, you need to know the following:

1. Current market value: The value of the asset in the market currently.
2. Estimated residual value: The value of the asset at the end of its useful life.
3. Historical cost: The original cost of acquiring the asset.
4. Estimated useful life: The expected duration over which the asset will provide economic benefits.

Therefore, the correct answer is option a) current market value. This is not required to calculate depreciation as the focus is on the initial cost, residual value, and useful life of the asset.