True and fair profit of any business can only be determined after charging depreciation
because it is an expense which is important for taxation purposes. But many analysts think
that depreciation is not that much necessary for the business because it reduces profit while
some businesses think that it is necessary because of tax benefits.What do you think? Is
depreciation an important treatment for every business? How will you compare the
importance of depreciation for a manufacturing organization and for a Service organization?
Which method is suitable for these organizations- straight line method OR written down
value method? Explain.
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