Examveda
Examveda

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


Join The Discussion

Comments ( 3 )

  1. JaydipSinh Gohil
    JaydipSinh Gohil :
    4 years ago

    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

  2. Esu Kcon
    Esu Kcon :
    4 years ago

    Can someone explain to me how they get the answer??

  3. Sujith Ck
    Sujith Ck :
    5 years ago

    How

Related Questions on Construction Planning and Management

If to, tp and tm are the optimistic, pessimistic and most likely time estimates of an activity respectively, the expected time t of the activity will be

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. $$\frac{{{{\text{t}}_{\text{o}}} + 4{{\text{t}}_{\text{m}}} + {{\text{t}}_{\text{p}}}}}{6}$$