Question

The formula to calculate depreciation under the WDV Method is:

विकल्प

• Depreciation = (Cost − Scrap Value) ÷ Life of Asset

• Depreciation = Cost × Rate of Depreciation ÷ 100

• Depreciation = Book Value at beginning of year × Rate of Depreciation ÷ 100

• Depreciation = Cost × (Rate ÷ 2)

Answer 1

Depreciation = Book Value at beginning of year × Rate of Depreciation ÷ 100

Explanation:

In WDV, depreciation is based on the book value at the beginning of each year, not the original cost.