alleryStart learning →A machine costing Rs 100000 (worth Rs 120000 at year end) sells next year for Rs 115000. Gain?
ARs 15000
BRs 20000
CRs 5000
DRs 35000
Answer & Solution
Correct answer: A. Rs 15000
The gain is sale price Rs 115000 minus historical cost Rs 100000, and all of it falls in the sale year.
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