“Depreciation is provided to not only cover capital expenditure during the span of
Assets life, but also to accumulate required funds for the replacement of the PPE” Explain this
statement. Also differentiate two popular method of depreciation with suitable figures.
please help me this is collage que
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Answer:
see in text book u will get it
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Explanation:
When we purcahse an asset, the purpose is to get some profit out of it, which is calculated by considering the return on investment. Now whatever is purcahsed is guaged in two main paramters, its initial investment and its depreciation with time. The purpose is this that the investment is good enough to yield considerable profit and growth before it depreciates out properly. Normally this profit is seen as enough earning to gain a new asset and PPE till the time it totally dies out
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