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Which method is used to calculate depreciation under the Compound Interest Method?
  • a)
    An allowance equal to a percentage of the original cost divided by the asset's life.
  • b)
    An annual contribution that accumulates at compound interest until 90% of the original cost is reached.
  • c)
    An allowance based on the current market value of the asset.
  • d)
    An allowance that decreases linearly over the asset's life.
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Which method is used to calculate depreciation under the Compound Inte...
The Compound Interest Method of depreciation involves setting aside an annual contribution that accumulates at compound interest until an amount equal to 90% of the original cost is reached.
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Which method is used to calculate depreciation under the Compound Interest Method?a)An allowance equal to a percentage of the original cost divided by the asset's life.b)An annual contribution that accumulates at compound interest until 90% of the original cost is reached.c)An allowance based on the current market value of the asset.d)An allowance that decreases linearly over the asset's life.Correct answer is option 'B'. Can you explain this answer? for B Com 2025 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Which method is used to calculate depreciation under the Compound Interest Method?a)An allowance equal to a percentage of the original cost divided by the asset's life.b)An annual contribution that accumulates at compound interest until 90% of the original cost is reached.c)An allowance based on the current market value of the asset.d)An allowance that decreases linearly over the asset's life.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for B Com 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which method is used to calculate depreciation under the Compound Interest Method?a)An allowance equal to a percentage of the original cost divided by the asset's life.b)An annual contribution that accumulates at compound interest until 90% of the original cost is reached.c)An allowance based on the current market value of the asset.d)An allowance that decreases linearly over the asset's life.Correct answer is option 'B'. Can you explain this answer?.
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