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Depreciation under Diminishing Balance Method is calculated on?
15. Depreciation under Diminishing Balance Method is calculated on?
- Scrap Value
- Book Value
- Cash Account
- Repair
Answer: B) Book Value
Explanation:
As indicated by the Diminishing Balance Method, devaluation is charged at a proper rate on the book worth of the resource. This strategy depends on the understanding that in the prior years the expense of fixes to the resources is low and henceforth more measures of deterioration ought to be charged.