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Depreciation begins when an asset is:
APurchased physically by firm
BInsured against fire damage
CSold to third party customer
DAvailable for intended use
Answer & Solution
Correct answer: D. Available for intended use
1. AS 10 requires depreciation to start when the asset is available for use in its intended location and condition.
2. Mere purchase is not enough if the asset is not yet ready.
3. Sale and insurance are unrelated triggers.
_Source: ICAI BoS Foundation Paper 1, Ch 5 "Depreciation & Amortisation", §1.1 ¶5_
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