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What are types of Depreciation?
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Answer Posted / zakiur rahman
The depreciation is of two types: book and tax
depreciation.
Book depreciation is done for the use of the company to
report its financial status to its stockholders and other
related people.
Tax depreciation is done for the purpose of calculating
taxes. Both methods are based on the principle of matching
concept, which requires that a fraction of the cost of the
asset in an accounting period, commensurate with its use in
that period, is charged as an expense.
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