Multiple choice

Directions: Choose the correct option for the given question.

Which among the following is not considered for depreciable cost?

  1. Interest

  2. Brokerage for purchasing asset

  3. Errection charges

  4. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Depreciable cost is the historical cost of an asset minus its salvage value. Interest paid on loans to purchase the asset is a financing cost, not part of the asset's cost.

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