To calculate depreciation expense we do not use the estimated useful life of the asset. True False

Answer

The statement "To calculate depreciation expense we do not use the estimated useful life of the asset" is False.

Explanation

Depreciation expense is calculated based on the estimated useful life of an asset. This useful life determines how long the company expects to use the asset, which is essential for spreading its cost over that duration. Various methods can be used to calculate depreciation, such as straight-line, declining balance, or units of production, but all of them rely on the estimated useful life of the asset to determine the amount of expense to recognize each period.

Thus, the estimated useful life is a critical factor in calculating depreciation; therefore, the statement is false.