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A building bought for Rs 2.5 crore now has a higher market value. How is it shown in later years?
AAt Rs 2.5 crore, its cost
BAt its replacement cost
CAt a mid-point value
DAt the new market value
Answer & Solution
Correct answer: A. At Rs 2.5 crore, its cost
Historical cost does not change year after year even though market value may.
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