The depreciation on an asset purchased through hire purchase should be:

Based on the total cost including interest

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Based on the cost price of the asset only

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Should be straight line only

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No depreciation should be provide until the final payment is made

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Solution

The correct option is B Based on the cost price of the asset only
The depreciation on an asset purchased through hire purchase should be based on the cost price of the asset only.

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The depreciation on an asset purchased through hire purchase should be:

The correct option is B Based on the cost price of the asset onlyThe depreciation on an asset purchased through hire purchase should be based on the cost price of the asset only.

The correct option is B Based on the cost price of the asset only
The depreciation on an asset purchased through hire purchase should be based on the cost price of the asset only.