Question

Formula for depreciation is _______.

• A. Market value$\times$ Rate of Depreciation
• B. Current cost$\times$ Rate of Depreciation
• C. Original cost $\times$Rate of Depreciation
• D. None of the above

Answer 1

Answer: (C)

Original cost $\times$Rate of Depreciation

Depreciation is calculated at a certain percentages on the the original cost of the asset.

Below is the formula for calculating the amount of depreciation:

Original Cost of asset x Rate of depreciation.