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A firm buys a patent for Rs 10,00,000 with a useful life of 10 years. What is the yearly amortisation?
ARs 50,000
BRs 10,000
CRs 2,00,000
DRs 1,00,000
Answer & Solution
Correct answer: D. Rs 1,00,000
Rs 10,00,000 spread equally over 10 years gives Rs 1,00,000 written off each year.
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