A machine costing Rs 200,000 has an estimated scrap value of Rs 40,000 and a useful life of 5 years. What is the annual depreciation under the straight-line method?
Answer and explanation
Correct answer: D. Rs 32,000
- Step 1: Annual depreciation = (cost - scrap value) / life.
- Step 2: (200000 - 40000) / 5 = 32000.
Answer
Rs 32,000.
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