Which factor determines the amount of depreciation?

All of these

The correct answer is option 4- All of these.

Depreciation is “a measure of the wearing out, consumption or other loss of value of depreciable asset arising from use, effluxion of time or obsolescence through technology and market-change. Depreciation is allocated so as to charge fair proportion of depreciable amount in each accounting period during the expected useful life of the asset. Depreciation includes amortisation of assets whose useful life is pre-determined”. Depreciation has a significant effect in determining and presenting the financial position and results of operations of an enterprise. Depreciation is charged in each accounting period by reference to the extent of the depreciable amount. The subject matter of depreciation, or its base, are ‘depreciable’ assets which. “are expected to be used during more than one accounting period, have a limited useful life; and are held by an enterprise for use in production or supply of goods and services, for rental to others, or for administrative purposes and not for the purpose of sale in the ordinary course of business.”  The amount of depreciation basically depends upon three factors, i.e. Cost, Useful life and Net realisable value. The Cost of a fixed asset is “the total cost spent in connection with its acquisition, installation and commissioning as well as for add item or improvement of the depreciable asset”.