Depreciation

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February 16, 2020 at 2:11 pm #562008
beticopper
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Do we calculate depreciation on just purchase cost or we include additional costs like installation and transportation in purchase cost as well and do we include all capital expenses in purchase cost before calculating depreciation?
February 16, 2020 at 4:43 pm #562021
John Moffat
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Installation and transportation is capital expenditure and is included in the cost of non-current assets (on which the depreciation is calculated).
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