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Question
Under which method of depreciation amount of depreciation changes every year?
Solution
Under Written-Down Value method, depreciation is charged at a fixed rate on the diminished or reduced value of the asset, i.e. the cost after deducting previously charged depreciation. As a result of this, with the decline in the value of asset year after year, the amount of depreciation also decreases from one year to another. Thus, the amount of depreciation changes every year.
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Additional Information - Depreciation on Fixed Asset
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