When the plant and machinery are in very good condition, depreciation:

Will not be provided

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Is to be provided as usual

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May or may not be provided

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None of the above

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Solution

The correct option is B Is to be provided as usual
When the plant and machinery are in a very good condition, depreciation will be provided as usual. Depreciation is writing off the cost of the asset over the useful life of the asset. The reason can be passage of time, wear and tear etc. Even if the machinery is in good condition the depreciation has to be provided to apportion the cost over the life of the asset.

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