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Arrange the following in sequence while calculating depreciation using straight line method.

(A) Life of Asset

(B) Salvage Value of Asset

(C) Cost of Asset

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 2

The spreadsheet function is SLN(cost, salvage, life)\text{SLN(cost, salvage, life)}, and its arguments must be supplied in that order.

So the sequence is cost of asset (C), salvage value (B), then life of asset (A), matching Depreciation=Cost−SalvageLife\text{Depreciation}=\frac{\text{Cost}-\text{Salvage}}{\text{Life}}.

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