Depreciation

if a second hand capital asset is purchased by an entity. the purchasing entity will charge depreciation on the cost on which it has purchased or at cost purchased by the first entity? please explain.
Replies (4)
Quick Summary
When an entity buys a second-hand capital asset, depreciation is calculated based on the cost the *purchasing* entity paid for it. It is not based on the cost incurred by the original owner. This ensures that depreciation reflects the actual investment made by the current owner.

At purchased cost not first cost.
Thank you
The cost at which you buy
Thank ayusmita

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