Examveda

A machinery having a residual value of Rs. 5,000 was purchased on 1st January 1998 for Rs. 1,00,000 and was depreciated @ 9.5% on a straight line method. On 1st January 1998, it was estimated that its useful life has been reduced to eight years. Under the changed circum-stances, the annual depreciation charges for the year 1991 and onwards will be:

A. Rs. 11,875

B. Rs. 13,300

C. Rs. 9,500

D. Rs. 12,500

Answer: Option A


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