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What is the difference between Prime Cost and Diminishing Value methods of depreciation?

April 26, 2017COST depreciation diminishing methods Prime value

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What is the difference between Prime Cost and Diminishing Value methods of depreciation?

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Two methods can be applied when depreciating property, the Diminishing Value (DV) and Prime Cost (PC) method. The intentions of the property investor will determine which depreciation method will be most suitable for them. Under the diminishing value method the deduction is calculated as a percentage of the balance you have left to deduct.