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  • 24-01-2021
  • Business
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what are the problems encountered in dealing with the depreciation of non-current assets?

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  • 24-01-2021

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.

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