A machine costing Rs 50,000 with no scrap has a 4-year life. Year 1 depreciation by sum-of-years-digits is?
ARs 12,500
BRs 15,000
CRs 25,000
DRs 20,000
Answer & Solution
Correct answer: D. Rs 20,000
Digits 4+3+2+1 sum to 10, so year 1 is 4/10 of 50,000, which is 20,000.
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