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Answer Posted / vinotha.v
the assets value year to year reduce the value (ie)
depreciation.
EX. Machinery value Rs. 10000/-
Depreciation @ 10%
Calculation of Depreciation:
Machinery value 10000
Less: Depreciation 10000*10% 1000
_______
Machinery original value: 9000
_______
Depreciation value = Rs.1000/-.
So The machinery value year to year to change.
ie Next year calculated the depreciation Rs.9000/-
(machinery).
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