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Total Assets to Debt Ratio

Depreciation ...

Question

Depreciation value of an asset is equal to:

A

Cost + Scrap value

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B

Cost + Market price

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C

Cost - Scrap value

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D

None of these

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Solution

The correct option is C Cost - Scrap value
The depreciation value of an asset is equal to the cost minus the scrap value.
Hence, option (C) is the correct answer.

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