Cost Rs 1,00,000, residual Rs 10,000, life 5 years. What is yearly straight-line depreciation?
ARs 20,000
BRs 22,000
CRs 16,000
DRs 18,000
Answer & Solution
Correct answer: D. Rs 18,000
The depreciable amount is 1,00,000 less 10,000 = 90,000, and 90,000 divided by 5 years gives 18,000.
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