Investment company AS buys a construction machine for NOK 500,000. The expected economic life at the time of acquisition is 5 years. But; Adm.dir talks to a competitor who has bought a similar machine, and they say that they depreciate over 8 years. If you choose to depreciate over 8 years instead of 5 years as first thought; How will this affect the depreciation of the machine?

Choose the right answer

A Depreciation will be reduced Depreciation will be reduced

B Depreciation will increase Depreciation will increase

C Depreciation will not be affected Depreciation will not be affected

D This is a fall in value that must be written down when it is discovered