Which factor is NOT considered in calculating depreciable value?

The correct answer is based on the definition and components involved in calculating the depreciable value of an asset. Depreciable value refers to the portion of an asset’s cost that is subject to depreciation, which reflects the asset’s wear and tear, age, or obsolescence over time.

Transportation costs, installation fees, and salvage value are all considered in determining the depreciable value. Transportation costs and installation fees are part of the total capitalized cost of the asset, as they are necessary to prepare the asset for its intended use. Salvage value is also factored into the calculation because it represents the estimated resale value of the asset at the end of its useful life, which reduces the overall depreciable base.

Market value, however, does not factor into the calculation of depreciable value. Market value reflects what an asset can be sold for in the market at a given time, which can fluctuate based on supply and demand and does not directly influence the cost basis used for depreciation. Thus, it is not considered in the calculation of an asset's depreciable value, making it the correct choice.