alleryStart learning →Cost Rs 5,00,000, depreciation Rs 3,00,000, sold for Rs 2,40,000. Result?
ALoss of Rs 40,000
BProfit of Rs 40,000
CProfit of Rs 2,40,000
DProfit of Rs 1,00,000
Answer & Solution
Correct answer: B. Profit of Rs 40,000
Net book value is 2,00,000, so sale at 2,40,000 yields a profit of 40,000.
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