"In case of a long-term asset, repair and maintenance expenses are expected to rise in later years than in the earlier year." Which method, is suitable for charging depreciation if the management does not want to increase the burden on profits and loss account on account of depreciation and repair.

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Solution

In this situation, it would be appropriate to charge depreciation at written down value method because in that case, the amount of depreciation starts getting reduced which will not let the burden of repair and maintenance on profits and loss in the coming years.

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