Depreciation Question:

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List various methods for calculating depreciation?

Depreciation Interview Question
Depreciation Interview Question

Answer:

Methods for calculating depreciation are:

-Straight Line Method
-Written Down Value(Reducing Balance)Method
-Production Unit Method
-Production Hour Method
-Joint Factor Rate Method
-Revaluation Method
-Renewal Method

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Explain straight line method to calculate depreciation. What are it advantages and limitations?What is the effect of depreciation of assets on profits received by owners?