Depreciation = Cost of asset less scrap value / Estimated working _____ of assets.

Life period

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Hours

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Days

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Solution

The correct option is A Life period
Depreciation is the permanent and continuous decrease in the book value of a depreciable fixed asset due to use, effluxion of time, obsolescence, expiration of legal rights or any other cause.
Formula for calculating depreciation is :
Depreciaion = (Cost of asset - Scrap value)/ Estimated working life period of assets.

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