Factors affecting the calculation of the annual depreciation of an asset are
A. Body shape of the asset
B. Original cost of the asset
C. Scrap value of the asset
D. Useful life of the asset
Choose the correct answer from the options given below:
Factors affecting the calculation of the annual depreciation of an asset are
A. Body shape of the asset
B. Original cost of the asset
C. Scrap value of the asset
D. Useful life of the asset
Choose the correct answer from the options given below:
Solution
✅ Correct Option: 3
Annual depreciation under the straight line method is .
So the original cost, scrap value and useful life all enter the calculation.
The physical shape of the asset plays no role, so B, C and D only.
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2025: 21 May Shift 1