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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

Answer & Solution
Correct Answer: Option B
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3 Comments
JaydipSinh Gohil
JaydipSinh Gohil 6 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
Esu Kcon
Esu Kcon 6 years ago
Can someone explain to me how they get the answer??
Sujith Ck
Sujith Ck 7 years ago
How