Since some portion of a plant asset is used up during each year of its service life,

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Since some portion of a plant asset is used up during each year of its service life, a portion of the cost of the asset is treated as a(n) [revenue /

expense] in each year. For example, suppose a machine is purchased at a cost of $120,000. It has an estimated service life of eight years and will be worthless then. It would be reasonable to charge (what fraction?), or $ as expense in each of the eight years.

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Essentials Of Accounting

ISBN: 9780273771463

11th International Edition

Authors: Leslie K. Breitner

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