alleryStart learning →A patent costing Rs 12 lakh has an 8 year life and no third-party buy-back commitment. Annual amortisation?
ARs 1.5 lakh
BRs 1 lakh
CRs 2 lakh
DRs 1.2 lakh
Answer & Solution
Correct answer: A. Rs 1.5 lakh
With nil residual value and straight-line charge, 12 lakh divided by 8 years gives Rs 1.5 lakh a year.
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