Which method is useful for assets like Plant and machinery, vehicles_______.

Straight line method

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Written down value method

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Both A and B

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None

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Solution

The correct option is B Written down value method
Written down value method is suitable for those assets in relation to which:
(a) the amount of repairs and renewals goes on increasing as the asset grows older.
(b) the possibilities of obsolescence are more.
This method is suitable for plant and machinaries, building etc.

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