What is the method used to calculate depreciation for vehicles?

The method of calculating depreciation for vehicles that involves a 1.7% straight line per month is often used because it provides a consistent and predictable reduction in the vehicle's value over time. The straight-line method spreads the cost of the asset evenly over its useful life, meaning that each month, the asset loses a set percentage of its initial value.

By choosing 1.7% per month, this method allows for straightforward annual planning and financial forecasting. Users can easily track the depreciation for accounting purposes, making it beneficial for businesses that need to report expenses accurately. This approach is suitable for most vehicles, considering their typical usage and the need for regular valuations.

Other options might involve different percentages or methods that do not align with standard practices in vehicle depreciation calculation, making this the most appropriate choice for the scenario presented.