Which statement accurately describes the written down value method of depreciation?

Show Answers

Only statement (i) is correctOnly statement (ii) is correctBoth statements (i) and (ii) are correctStatements (i), (ii), and (iii) are all correctNone of the above

Explanation

Under the written down value method, the depreciation rate remains constant, but the depreciation expense decreases each year because it is applied to a reducing asset balance. Therefore, only statement (ii) is accurate since the amount depreciated diminishes annually. Statements (i) and (iii) are incorrect because the depreciation rate does not reduce over time, and statement (iv) is false because the asset's value does not necessarily reach zero.