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Commerce · Q993

Accounting

Graduate and Post Graduate · Commerce · question 993

Q993

The Purpose of providing depreciation is:

A.
to reduce the book value of fixed assets to the level of their market value each year
B.
to save income tax and wealth tax
C.
to reduce fixed assets to nil value as soon as possible
D.
to allocate the cost of fixed assets over their working life
Answer

Answer: Option D

Solution

Answer: Option D
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