alleryStart learning →A Rs 6,00,000 grant on equipment with a 5-year life. Annual deferred income released?
ARs 60,000
BRs 1,50,000
CRs 3,00,000
DRs 1,20,000
Answer & Solution
Correct answer: D. Rs 1,20,000
Deferred income is recognised over the useful life: 6,00,000 divided by 5 equals 1,20,000 a year.
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