Differentiate diminution in value from depreciation.

• A. Depreciation is the wear-based deduction from value.
• B. Diminution in value is the wear-based deduction from value.
• C. Depreciation is the wear-based deduction; diminution in value is the post-accident residual value reduction due to history.
• D. Diminution in value means the same as depreciation.

Answer: (C)