alleryUnder provision for depreciation method, asset is shown at:
AHistorical cost separately
BNet book value only
CSelling price reduced
DReplacement market cost
Answer & Solution
Correct answer: A. Historical cost separately
1. Provision method opens an accumulated depreciation account separately.
2. The asset is carried at historical cost in the ledger.
3. The balance sheet shows cost less accumulated depreciation.
_Source: ICAI BoS Foundation Paper 1, Ch 5 "Depreciation & Amortisation", §3 first alternative_
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