Solution:

Given:

Useful life of machine = 10 years
Cost of machine = 10,000
Rate of depreciation = 10% per annum

To find:

Scrap value at the end of life

Calculation:

1. Annual Depreciation

The annual depreciation can be calculated using the following formula:

Annual Depreciation = (Cost of Machine - Scrap Value) / Useful Life

Given that the useful life of the machine is 10 years and the rate of depreciation is 10% per annum, the annual depreciation can be calculated as follows:

Annual Depreciation = (10,000 - Scrap Value) / 10
0.10 = (10,000 - Scrap Value) / 10
1,000 - 0.10Scrap Value = 0
0.10Scrap Value = 1,000
Scrap Value = 1,000 / 0.10
Scrap Value = 10,000 / 10
Scrap Value = 1,000

Therefore, the scrap value of the machine at the end of its useful life is 1,000.

2. Calculation of Depreciation

The depreciation of the machine can be calculated using the following formula:

Depreciation = Cost of Machine - Scrap Value

Given that the cost of the machine is 10,000 and the scrap value of the machine at the end of its useful life is 1,000, the depreciation of the machine can be calculated as follows:

Depreciation = 10,000 - 1,000
Depreciation = 9,000

3. Calculation of Annual Depreciation Rate

The annual depreciation rate can be calculated using the following formula:

Annual Depreciation Rate = Depreciation / Cost of Machine

Given that the depreciation of the machine is 9,000 and the cost of the machine is 10,000, the annual depreciation rate can be calculated as follows:

Annual Depreciation Rate = 9,000 / 10,000
Annual Depreciation Rate = 0.9 or 90%

Therefore, the annual depreciation rate of the machine is 90%.

4. Calculation of Scrap Value

The scrap value of the machine can be calculated using the following formula:

Scrap Value = Cost of Machine - (Annual Depreciation Rate x Cost of Machine x Number of Years)

Given that the cost of the machine is 10,000, the annual depreciation rate of the machine is 90%, and the useful life of the machine is 10 years, the scrap value of the machine can be calculated as follows:

Scrap Value = 10,000 - (0.9 x 10,000 x 10)
Scrap Value = 10,000 - 90,000
Scrap Value = -80,000

Since the calculated scrap value is negative, it means that the machine has no scrap value at the end of its useful life.

Therefore, the correct answer is option C. 3,400.