A machine costs Rs 90,000 with scrap value Rs 10,000 and a 5-year life. Yearly straight-line depreciation is?
ARs 18,000
BRs 14,000
CRs 20,000
DRs 16,000
Answer & Solution
Correct answer: D. Rs 16,000
Depreciable amount is 90,000 minus 10,000 = 80,000, and 80,000 divided by 5 years gives 16,000 each year.
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