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    Question

    Under which condition will no depreciation be charged on

    a fixed asset during a financial year?
    A If the asset is idle for 3 months Correct Answer Incorrect Answer
    B If the asset is not put to use at all during the year Correct Answer Incorrect Answer
    C If the asset has a zero net book value Correct Answer Incorrect Answer
    D If the asset is depreciated over useful life Correct Answer Incorrect Answer

    Solution

    Depreciation is not charged if the asset is not available for use throughout the year.

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