Depreciation

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8 Points Posted on 17 October 2020
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.
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On 17 October 2020 at 17:39 Report
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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.

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61 Points Posted on 17 October 2020
At purchased cost not first cost.
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On 17 October 2020 at 19:42
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8 Points Posted on 17 October 2020
Thank you
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On 17 October 2020 at 20:00
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Tax consultant
5895 Points Posted on 17 October 2020
The cost at which you buy
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On 17 October 2020 at 23:23
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8 Points Posted on 18 October 2020
Thank ayusmita
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On 18 October 2020 at 08:06

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