Total depreciation recorded over an asset's service life is:

• A. Equal to the asset's depreciable cost
• B. Equal to the asset's salvage value
• C. Equal to the asset's original cost
• D. Equal to the accumulated depreciation at the end of the first year

Answer: (A)

Verified step by step guidance

1. Understand the concept of depreciation: Depreciation is the allocation of the cost of a tangible asset over its useful life. It reflects the reduction in the value of the asset due to usage, wear and tear, or obsolescence.
2. Define the term 'depreciable cost': The depreciable cost of an asset is calculated as the original cost of the asset minus its salvage value. Salvage value is the estimated residual value of the asset at the end of its useful life.
3. Clarify the relationship between total depreciation and depreciable cost: Total depreciation recorded over the asset's service life is equal to the asset's depreciable cost. This is because depreciation is calculated to allocate the entire depreciable cost over the useful life of the asset.
4. Eliminate incorrect options: The total depreciation cannot be equal to the asset's salvage value, original cost, or accumulated depreciation at the end of the first year. Salvage value is excluded from depreciation calculations, original cost includes salvage value, and accumulated depreciation at the end of the first year only represents one year's depreciation.
5. Conclude the correct answer: The total depreciation recorded over the asset's service life is equal to the asset's depreciable cost, as this represents the portion of the asset's value that is allocated as an expense over its useful life.