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Examveda

The cost of a machine having a span of life 5 years is Rs. 10,000. It has a scrap value of Rs. 1,000. The amount of depreciation in the first year under the sum of year's digit method will be:

A. Rs. 1,600

B. Rs. 1,800

C. Rs. 2,500

D. Rs. 3,000

Answer: Option D


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Comments ( 1 )

  1. Mostafizur Rahaman
    Mostafizur Rahaman :
    3 weeks ago

    5/15 * 9000
    (remaining useful life/SYM * depreciable cost)
    remaining use ful life = 5 years
    SYM = n(n+1)/2
    depreciable cost (10000-1000)

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