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Can anyone explain me what is given below
Answers (3)
When new asset is bought, depreciation under WDV will be high because of huge cost of asset. In future periods, depreciation will be less because the cost is written off(by depreciation in previous years) . When asset is old, repairs and maintenance expenses will be high. If you take average between depreciation and repairs, it will show more or less same amount throughout the life of the asset