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A machine costs Rs 50,000 with net residual value Rs 5,000. Its depreciable cost is what?
ARs 55,000
BRs 5,000
CRs 50,000
DRs 45,000
Answer & Solution
Correct answer: D. Rs 45,000
Depreciable cost is cost less net residual value, which is 50,000 minus 5,000, or 45,000.
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