Answer / ameet narayankhedkar

Depreciation refers to two very different but related concepts:

1. the decrease in value of assets (fair value
depreciation), and
2. the allocation of the cost of assets to periods in
which the assets are used (depreciation with the matching
principle).
The former affects values of businesses and entities. The
latter affects net income.

The depreciation will be calculated from the date of
purchase of an asset.

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