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# A machine which was bought for \$180,000 on 30 April 2008. The residual value was \$5,000 and depreciation rate was 25%. Depreciation is to be charged under the reducing balance method on month to month basis. Compute the depreciation at 31st December 2008a)\$30,000b)\$19,000c)\$18,000d)\$15,000Correct answer is option 'A'. Can you explain this answer? Related Test: Test: Depreciation Accounting - 1

## CA Foundation Question

 Soumi Choudhuri Sep 29, 2020
In reducing bal method salvage value ignored . now 180000*8/12 * 25 = 30000

machine purchased for 8 months

This discussion on A machine which was bought for \$180,000 on 30 April 2008. The residual value was \$5,000 and depreciation rate was 25%. Depreciation is to be charged under the reducing balance method on month to month basis. Compute the depreciation at 31st December 2008a)\$30,000b)\$19,000c)\$18,000d)\$15,000Correct answer is option 'A'. Can you explain this answer? is done on EduRev Study Group by CA Foundation Students. The Questions and Answers of A machine which was bought for \$180,000 on 30 April 2008. The residual value was \$5,000 and depreciation rate was 25%. Depreciation is to be charged under the reducing balance method on month to month basis. Compute the depreciation at 31st December 2008a)\$30,000b)\$19,000c)\$18,000d)\$15,000Correct answer is option 'A'. Can you explain this answer? are solved by group of students and teacher of CA Foundation, which is also the largest student community of CA Foundation. If the answer is not available please wait for a while and a community member will probably answer this soon. You can study other questions, MCQs, videos and tests for CA Foundation on EduRev and even discuss your questions like A machine which was bought for \$180,000 on 30 April 2008. The residual value was \$5,000 and depreciation rate was 25%. Depreciation is to be charged under the reducing balance method on month to month basis. Compute the depreciation at 31st December 2008a)\$30,000b)\$19,000c)\$18,000d)\$15,000Correct answer is option 'A'. Can you explain this answer? over here on EduRev! Apart from being the largest CA Foundation community, EduRev has the largest solved Question bank for CA Foundation.