In order to determine the depreciation amount of a tangible asset in Canada one

Question

In order to determine the depreciation amount of a tangible asset in Canada one has to calculate

the book value of an asset which diminishes by an accelerated rate each year.

the book value of an asset which diminishes with the rate of 2/N for an asset with a service life of N years.

the book value of an asset which diminishes with the rate of 1.5/N for an asset with a service life of N years.

the book value of an asset which diminishes by an equal amount each year.

the book value of an asset which diminishes by a constant proportion each year.

the book value of an asset which diminishes by an accelerated rate each year.

the book value of an asset which diminishes with the rate of 2/N for an asset with a service life of N years.

the book value of an asset which diminishes with the rate of 1.5/N for an asset with a service life of N years.

the book value of an asset which diminishes by an equal amount each year.

the book value of an asset which diminishes by a constant proportion each year.

Explanation / Answer

Ans:

the book value of an asset which diminishes by a constant proportion each year.

The different classes of assets are depreciated at their own constant rate.Hence in order to determine the depreciation amount of a tangible asset in Canada one has to calculate the book value of an asset which diminishes by a constant proportion each year.

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