Question If you buy a car, over what period is it likely to depreciate? a) It should be depreciated in full as soon as you buy it b) It will depreciate over the expected useful life of the car c) The value will not depreciate until you sell it d) The car is unlikely to depreciate in value

SIDHVH The Asker · Accounting

Transcribed Image Text: If you buy a car, over what period is it likely to depreciate? a) It should be depreciated in full as soon as you buy it b) It will depreciate over the expected useful life of the car c) The value will not depreciate until you sell it d) The car is unlikely to depreciate in value
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Transcribed Image Text: If you buy a car, over what period is it likely to depreciate? a) It should be depreciated in full as soon as you buy it b) It will depreciate over the expected useful life of the car c) The value will not depreciate until you sell it d) The car is unlikely to depreciate in value
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WLE4DC

【General guidance】The answer provided below has been developed in a clear step by step manner.Step1/2Depreciable assets are depreciated annually to account for reduction in the value of asset. Assets are first capitalized at the time of purchase and thereafter it is depreciated annually over the expected useful life of the car.Explanation:Please refer to solution in this step.Step2/2Correct choice is option (b).It will depreciate over the expected useful life of the car.Ex ... See the full answer