What is the value of a NEW car for calculating depreciation? Is it
(a) Total amount paid to acquire the car (including VAT, Road Tax, Handling Charges, external music system and Insurance); or
(b) Amount paid to acquire the car excluding VAT, Road Tax, Handling Charges and Insurance; or
(c) Insured value of the car.
Reply is sought SOLELY for calculating first year depreciation.
Understandably, the depreciated value for subsequent years would be 15% lower than the previous year's value.