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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