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Question
If the rate of depreciation is the same, then the amount of depreciation under straight-line method vis-à-vis written down value method will be ______.
Options
Equal in all years
Equal in the first year but higher in subsequent years
Equal in the first year but lower in subsequent years
Lower in the first year but equal in subsequent years.
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Solution
If the rate of depreciation is same, then the amount of depreciation under straight-line method vis-à-vis written down value method will be equal in the first year but higher in subsequent years.
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