Question

Which of the following statement is incorrect?

Depreciation is a reduction in the value of fixed asset over time.

 

Depreciation rates are decided by Income Tax Law

 

Depreciation is charged on all fixed assets

 

Depreciation by reducing balance method is prescribed by Income Tax law

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Answer 1

Answer:

Depreciation is charged on all fixed assets

Explanation:

Because it cannot be charged on land even though it is a fixed asset.