Question

Describe merits and demerits of any two methods of charging depreciation.
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Answer 1

The total amount of depreciation charged over an asset’s entire useful life (i.e. depreciable amount) is the same irrespective of the choice of depreciation method. The adoption of a particular depreciation method does however effect the amount of depreciation expense charged in each year of an asset’s life...

Answer 2

Answer:

Demerit

-Reduction in cost of asset

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