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What will be annual depreciation, assuming that a property loses its value by the same amount every year?
  • a)
    (original cost - scrap value)/life of property
  • b)
    (original cost + scrap value)/life of property
  • c)
    original cost + scrap value
  • d)
    original cost - scrap value
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
What will be annual depreciation, assuming that a property loses its v...
Straight line method of calculating depreciation-
Annual depreciation (D) = (original cost - scrap value)/life of property
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What will be annual depreciation, assuming that a property loses its value by the same amount every year?a)(original cost - scrap value)/life of propertyb)(original cost + scrap value)/life of propertyc)original cost + scrap valued)original cost - scrap valueCorrect answer is option 'A'. Can you explain this answer?
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