alleryStart learning →Equipment of Rs 20,00,000 with 10-year life gets a Rs 4,00,000 grant. Annual grant income?
ARs 40,000
BRs 2,00,000
CRs 1,60,000
DRs 4,00,000
Answer & Solution
Correct answer: A. Rs 40,000
The Rs 4,00,000 deferred income is spread over 10 years, giving Rs 40,000 a year.
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