179k views
6 votes
What are the problems encountered in dealing with the depreciation of non-current assets?

User Joshpk
by
4.9k points

1 Answer

13 votes

Answer:

The causes of depreciation are: Wear and tear. Any asset will gradually break down over a certain usage period, as parts wear out and need to be replaced. Other assets, such as buildings, can be repaired and upgraded for long periods of time. Non-current assets are usually valued by deducting the accumulated depreciation from the original purchase cost. For example, if a business bought a computer for $2100 two years ago, this is a non-current asset and it's subject to depreciation.

Step-by-step explanation:

User Nebelhom
by
5.3k points