Accounting for IGCSE & O level - Accounting Procedures (Section 5 - No. 37)
If an asset is used for both business and personal purposes, how is depreciation typically handled?
Depreciation is calculated only for the business use portion.
Depreciation is not allowed.
Depreciation is calculated for the entire asset value.
Depreciation is doubled to compensate for mixed use.
Explanation
Depreciation is only allowed for the business-related portion of the asset's usage.
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