Question

how does depreciation increase the value of other tangible assets.

Answer 1

Hi Gargi

Depreciation can never lead to increase in the value of tangible assets since depreciation is the fall in the value of fixed assets due to normal wear and tear with the continuous use of the asset.

However, the value of tangible assets may increase when they are revalued. In that case, the market value of the assets is more than the current book value of the asset and it will be regarded as appreciation.