Which factor does NOT influence depreciation?

Depreciation is the reduction in the value of an asset over time, and it can be influenced by various factors. The condition of the object, obsolescence, and its normal life expectancy all play critical roles in determining how much an asset depreciates.

When assessing the condition of an object, a well-maintained asset will typically depreciate at a slower rate than one that shows significant wear and tear. Obsolescence refers to the loss of value due to factors such as technological advancements or changes in consumer preferences, which can render an asset less valuable than it was initially. Normal life expectancy relates to the expected lifespan of the asset and affects how quickly it loses its value—assets with longer life expectancies are expected to depreciate more gradually.

However, market trends do not directly influence the depreciation of a specific asset in the same way that physical and intrinsic factors do. While market trends can impact the overall demand for certain types of assets, causing their market value to fluctuate, they do not determine the depreciation from a mechanical or physical standpoint. Depreciation is more closely linked to the attributes of the asset itself rather than external market conditions. Thus, market trends are not a direct factor in calculating depreciation.