Question

How is the value of computer equipment computed for ASM calculations?

a.

Based on its market value

b.

Based on its book value

c.

Based on a percentage of its cost over a period of years

d.

Based on its depreciation rate

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).Based on a percentage of its cost over a period of years Explanation:The value of computer equipment for ASM calculations is computed based on a percentage of its cost over a period of years, starting from 75% in the year of purchase to zero percent thereafter.

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