Question

Under the diminishing balance method, the amount of depreciation is calculated on __________________.

• A. The written down value of the asset
• B. The market value of asset
• C. The original cost of the asset
• D. The expected realisable value of the asset

Answer 1

The correct option is A The written down value of the asset

under diminishing balance method, the amount of depreciation is calculated on the reduced value of the asset i.e. The written down value of the asset.