CBSE 2022 Class 12 Economics Outside Delhi Set 3 (Term 2)

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Question : 2
Total: 5
Distinguish between depreciation and capital loss.
Solution:  
Depreciation refers to the normal wear and tear of the capital assets which take place during the production of goods and services. The Normal rate of accidental damage which can be repaired easily and expected technological obsolescence are also included in depreciation. Capital loss includes unexpected technological obsolescence and capital damage beyond economical repair.
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