Consider these statements about the written down value method of depreciation: (i) the rate falls each year; (ii) the amount of depreciation falls each year; (iii) both rate and amount fall each year; (iv) the asset is written down to zero over time. Which is true?
Correct answer D. (ii) only
Explanation
Under WDV, a fixed rate is applied to a declining book value, so the charge falls every year. The rate stays constant and the book value never reaches zero.
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