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Find the book value of the machine at the end of 6 years if a machine is purchased for Rs. 15,00000 and has estimated life of 15 years.
Given salvage value (Rs) at the end of 15 years is 2,25,000. Use straight line method of evaluation of depreciation.
- a)Rs. 988,000
- b)Rs. 989,000
- c)Rs. 990,000
- d)Rs. 991,000
Correct answer is option 'C'. Can you explain this answer?
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Verified Answer
Find the book value of the machine at the end of 6 years if a machine ...
Annual Depreciation is given by:
C = Cost Price of Machine = Rs 15,00000
V = Salvage value = Rs 2,25,000
n = estimated life of machine in years = 15
Book value (B) is given by:
B = C - nD
n = No. of years after which Book value is to be computed
B = 1500000 - 6 x 85000
B = 990000
Most Upvoted Answer
Find the book value of the machine at the end of 6 years if a machine ...
Given:
- Purchase cost of the machine = Rs. 15,00,000
- Estimated life of the machine = 15 years
- Salvage value at the end of 15 years = Rs. 2,25,000
- Depreciation method used = Straight-line method
To Find:
Book value of the machine at the end of 6 years
Solution:
The straight-line method of depreciation assumes that the value of an asset decreases uniformly over its useful life. To calculate the annual depreciation, we subtract the salvage value from the purchase cost and divide it by the estimated life of the asset.
Step 1: Calculate the annual depreciation
Depreciation = (Purchase Cost - Salvage Value) / Estimated Life
Depreciation = (15,00,000 - 2,25,000) / 15
Depreciation = 12,75,000 / 15
Depreciation = 85,000 per year
Step 2: Calculate the book value at the end of 6 years
Book Value = Purchase Cost - (Depreciation x Number of Years)
Book Value = 15,00,000 - (85,000 x 6)
Book Value = 15,00,000 - 5,10,000
Book Value = 9,90,000
Therefore, the book value of the machine at the end of 6 years is Rs. 9,90,000, which corresponds to option 'C'.
- Purchase cost of the machine = Rs. 15,00,000
- Estimated life of the machine = 15 years
- Salvage value at the end of 15 years = Rs. 2,25,000
- Depreciation method used = Straight-line method
To Find:
Book value of the machine at the end of 6 years
Solution:
The straight-line method of depreciation assumes that the value of an asset decreases uniformly over its useful life. To calculate the annual depreciation, we subtract the salvage value from the purchase cost and divide it by the estimated life of the asset.
Step 1: Calculate the annual depreciation
Depreciation = (Purchase Cost - Salvage Value) / Estimated Life
Depreciation = (15,00,000 - 2,25,000) / 15
Depreciation = 12,75,000 / 15
Depreciation = 85,000 per year
Step 2: Calculate the book value at the end of 6 years
Book Value = Purchase Cost - (Depreciation x Number of Years)
Book Value = 15,00,000 - (85,000 x 6)
Book Value = 15,00,000 - 5,10,000
Book Value = 9,90,000
Therefore, the book value of the machine at the end of 6 years is Rs. 9,90,000, which corresponds to option 'C'.
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Find the book value of the machine at the end of 6 years if a machine is purchased for Rs. 15,00000 and has estimated life of 15 years.Given salvage value (Rs) at the end of 15 years is 2,25,000. Use straight line method of evaluation of depreciation.a)Rs. 988,000b)Rs. 989,000c)Rs. 990,000d)Rs. 991,000Correct answer is option 'C'. Can you explain this answer?
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Find the book value of the machine at the end of 6 years if a machine is purchased for Rs. 15,00000 and has estimated life of 15 years.Given salvage value (Rs) at the end of 15 years is 2,25,000. Use straight line method of evaluation of depreciation.a)Rs. 988,000b)Rs. 989,000c)Rs. 990,000d)Rs. 991,000Correct answer is option 'C'. Can you explain this answer? for Civil Engineering (CE) 2024 is part of Civil Engineering (CE) preparation. The Question and answers have been prepared according to the Civil Engineering (CE) exam syllabus. Information about Find the book value of the machine at the end of 6 years if a machine is purchased for Rs. 15,00000 and has estimated life of 15 years.Given salvage value (Rs) at the end of 15 years is 2,25,000. Use straight line method of evaluation of depreciation.a)Rs. 988,000b)Rs. 989,000c)Rs. 990,000d)Rs. 991,000Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Civil Engineering (CE) 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Find the book value of the machine at the end of 6 years if a machine is purchased for Rs. 15,00000 and has estimated life of 15 years.Given salvage value (Rs) at the end of 15 years is 2,25,000. Use straight line method of evaluation of depreciation.a)Rs. 988,000b)Rs. 989,000c)Rs. 990,000d)Rs. 991,000Correct answer is option 'C'. Can you explain this answer?.
Find the book value of the machine at the end of 6 years if a machine is purchased for Rs. 15,00000 and has estimated life of 15 years.Given salvage value (Rs) at the end of 15 years is 2,25,000. Use straight line method of evaluation of depreciation.a)Rs. 988,000b)Rs. 989,000c)Rs. 990,000d)Rs. 991,000Correct answer is option 'C'. Can you explain this answer? for Civil Engineering (CE) 2024 is part of Civil Engineering (CE) preparation. The Question and answers have been prepared according to the Civil Engineering (CE) exam syllabus. Information about Find the book value of the machine at the end of 6 years if a machine is purchased for Rs. 15,00000 and has estimated life of 15 years.Given salvage value (Rs) at the end of 15 years is 2,25,000. Use straight line method of evaluation of depreciation.a)Rs. 988,000b)Rs. 989,000c)Rs. 990,000d)Rs. 991,000Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Civil Engineering (CE) 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Find the book value of the machine at the end of 6 years if a machine is purchased for Rs. 15,00000 and has estimated life of 15 years.Given salvage value (Rs) at the end of 15 years is 2,25,000. Use straight line method of evaluation of depreciation.a)Rs. 988,000b)Rs. 989,000c)Rs. 990,000d)Rs. 991,000Correct answer is option 'C'. Can you explain this answer?.
Solutions for Find the book value of the machine at the end of 6 years if a machine is purchased for Rs. 15,00000 and has estimated life of 15 years.Given salvage value (Rs) at the end of 15 years is 2,25,000. Use straight line method of evaluation of depreciation.a)Rs. 988,000b)Rs. 989,000c)Rs. 990,000d)Rs. 991,000Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for Civil Engineering (CE).
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ample number of questions to practice Find the book value of the machine at the end of 6 years if a machine is purchased for Rs. 15,00000 and has estimated life of 15 years.Given salvage value (Rs) at the end of 15 years is 2,25,000. Use straight line method of evaluation of depreciation.a)Rs. 988,000b)Rs. 989,000c)Rs. 990,000d)Rs. 991,000Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice Civil Engineering (CE) tests.
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