Depreciation is calculated on the Cost of the assets. The original cost of an asset takes into consideration all of the items that can be attributed to its purchase and to putting the asset to use. These costs include the purchase price and such factors as commissions, transportation, appraisals, warranties and installation, and testing, etc. In the above question, the cost of staff training is not part of the cost of the asset, therefore it should not be taken into consideration for the purpose of calculating depreciation.