alleryStart learning →A Rs 90,000 machine, nil scrap, had 9 years straight line. After 3 years, total life is 12. New yearly charge?
ARs 5,000
BRs 7,500
CRs 10,000
DRs 6,667
Answer & Solution
Correct answer: D. Rs 6,667
Book value is 90,000 less 3 x 10,000 = 60,000, spread over the 9 remaining years gives about Rs 6,667 a year prospectively.
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