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    Question

    The depreciation of assets is computed on

    their:
    A Book value. Correct Answer Incorrect Answer
    B Market Value. Correct Answer Incorrect Answer
    C Book Value or Market Value, whichever is less. Correct Answer Incorrect Answer
    D Scrap value. Correct Answer Incorrect Answer

    Solution

    Depreciation of assets is typically computed on their book value. Book value is the original cost of the asset minus its accumulated depreciation. It represents the carrying amount of the asset on the company's books.

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