alleryStart learning →Equipment bought at Rs 6,00,000 had 6 years of life, no scrap. After 2 years, 8 years remain. New yearly charge?
ARs 1,00,000
BRs 50,000
CRs 66,667
DRs 75,000
Answer & Solution
Correct answer: B. Rs 50,000
Carrying amount after 2 years is Rs 4,00,000; dividing by the revised 8 remaining years gives Rs 50,000 prospectively.
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