Question

Under _____ method depreciation is provided as a fixed percentage of the written down value of the asset.

• A. Fixed instalment method.
• B. Annuity method
• C. Reducing balance method
• D. All of the above

Answer 1

The correct option is C Reducing balance method

Reducing balance depreciation is a method of calculating depreciation whereby an asset is expensed as a set percentage each accounting period. Asset cost: the original value of the asset plus any additional costs required to get the asset.