The annual depreciation of an asset is independent of:-

The correct answer is Option (3) → Profit gained from the asset.

By the straight line method, the annual depreciation is

    \( \displaystyle D = \frac{\text{Original cost} - \text{Scrap value}}{\text{Useful life (in years)}} \)

It uses only the original cost, the scrap value and the useful life. The profit gained from the asset does not enter it: depreciation measures the fall in the asset’s value, whatever the asset earns.

CBSE Applied Mathematics (Class XII):
Depreciation