A machine is purchased for Rs. 10,000,00 and has an estimated life of 10 years. The salvage value at the end of 10 years is Rs. 1,50,000. The book value of the machine at the end of 5 years using general straight line method of evaluation of depreciation is
A. Rs. 4,75,000
B. Rs. 5,75,000
C. Rs. 6,50,000
D. Rs. 8,50,000
Answer: Option B
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Comments ( 3 )
The normal time required for the completion of project in the above problem is
A. 9 days
B. 13 days
C. 14 days
D. 19 days
A. $$\frac{{{{\text{t}}_{\text{o}}} + 3{{\text{t}}_{\text{m}}} + {{\text{t}}_{\text{p}}}}}{2}$$
B. $$\frac{{{{\text{t}}_{\text{o}}} + 3{{\text{t}}_{\text{m}}} + {{\text{t}}_{\text{p}}}}}{3}$$
C. $$\frac{{{{\text{t}}_{\text{o}}} + 4{{\text{t}}_{\text{m}}} + {{\text{t}}_{\text{p}}}}}{4}$$
D. $$\frac{{{{\text{t}}_{\text{o}}} + 4{{\text{t}}_{\text{m}}} + {{\text{t}}_{\text{p}}}}}{5}$$
E. $$\frac{{{{\text{t}}_{\text{o}}} + 4{{\text{t}}_{\text{m}}} + {{\text{t}}_{\text{p}}}}}{6}$$
A construction schedule is prepared after collecting
A. Number of operations
B. Output of labour
C. Output of machinery
D. All the above
A. 3.5 and $$\frac{5}{6}$$
B. 5 and $$\frac{{25}}{{36}}$$
C. 3.5 and $$\frac{{25}}{{36}}$$
D. 4 and $$\frac{5}{6}$$
Salvage Value = 1,50,000/-
So, 10,00,000-1,50,000= 8,50,000 for 10 Years
And for 1 Year it will be 85,000Rs
So , Book Value at 5 Years
= 10,00,000-(85,000*5)
= 10,00,000-4,25,000
= 5,75,000/- Rs
Can someone explain to me how they get the answer??
How