Accounting · Depreciation Methods

Statement 1: Under the Provision for Depreciation Account method, the asset account always appears at its original cost in the balance sheet, while the total depreciation accumulated to date is shown as a deduction on the liabilities side or as a contra-asset. Statement 2: When an asset is sold under the Provision for Depreciation method, the original cost of the asset sold is transferred from the Asset Account to an Asset Disposal Account, and the accumulated depreciation on that specific asset is transferred from the Provision account to the same Disposal Account. Statement 3: The Sum of Years Digits (SYD) method is an accelerated depreciation method where the depreciation charge is calculated by multiplying the depreciable amount by a fraction, the numerator of which is the remaining useful life and the denominator is the sum of the digits of the total useful life. Identify the correct evaluation of these statements based on standard accounting principles.