Discuss the different reasons for depreciation

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Reference no: EM131356405

Ryan owns a five-hectare plot of land in the countryside. He has been planning to build a cottage on the site for some time, but has not been able to afford it yet. However, five years ago, he dug a pond to collect rainwater as a water supply for the cottage. It has never been used, and is beginning to fill in with plant life and garbage that has been dumped there. Ryan realizes that his investment in the pond has depreciated in value since he dug it. Discuss the different reasons for depreciation and which you think would be most appropriate for the pond.

Reference no: EM131356405

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