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For an asset costing Rs 2,50,000 with yearly straight line depreciation of Rs 20,000, what is the rate?
A8 percent
B10 percent
C12 percent
D20 percent
Answer & Solution
Correct answer: A. 8 percent
Rate is annual depreciation over acquisition cost: 20,000 divided by 2,50,000 times 100 equals 8 percent.
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