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A machine costing Rs 20 lakh has a useful life of 10 years. Its annual depreciation is
ARs 1 lakh
BRs 4 lakh
CRs 10 lakh
DRs 2 lakh
Answer & Solution
Correct answer: D. Rs 2 lakh
Annual depreciation is cost divided by useful life, which is 20 lakh divided by 10 or Rs 2 lakh.
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