Question

While calculating depreciation under fixed installment method using the formula :-
Yearly Depreciation=
$\frac{(cost - scrap \: value)}{life \: of \: the \: asset}$
Do we include costs like installation charges , transportation charges in the total cost to calculate depreciation ?​

Answer 1

Answer:

Yes while calculating cost of assets all expenses incurred on acquisition of assets is included in the total cost of assets