Question

Can following written down value method of depreciation result in the reduction of depreciation?

Option 1) Yes

Option 2) No

Option 3) Can't say

Option 4) None of these

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Answer

Correct Option: Option 1) Yes

Yes, following the written down value method of depreciation can indeed result in a reduction of depreciation. Under this method, depreciation is calculated based on the book value of the asset at the beginning of each year, and since this book value decreases annually, the amount of depreciation also decreases year on year.


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