To calculate depreciation using GAAP rules, you must determine an asset's... acquisition cost, estimated life, residual value and the depreciation method to be used. cost basis and recovery period. cost basis, depreciable basis and recovery period. cost basis, depreciable basis, recovery period and the depreciation method to be used. An asset's original cost includes ... the invoice price, but not the sales tax or transportation or installation costs. the invoice price and sales tax, but not the transportation or installation costs. the invoice price, sales tax and transportation costs, but not the installation costs. the invoice price, sales tax and transportation and installation costs