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Original cost = Rs. 1,26,000; Salvage value = Nil; Useful life = 6 years. Depreciation for the first year under sum of years digits method will be
- a)Rs. 6,000
- b)Rs. 12,000
- c)Rs. 18,000
- d)Rs. 36,000
Correct answer is option 'D'. Can you explain this answer?
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Original cost = Rs. 1,26,000; Salvage value = Nil; Useful life = 6 yea...
Calculation of Depreciation using Sum of Years Digits Method:
First, we need to calculate the sum of the years' digits for the asset with a useful life of 6 years. The formula to calculate the sum of years' digits is: n*(n+1)/2, where n is the useful life of the asset.
Sum of Years' Digits:
- n = 6 years
- Sum = 6*(6+1)/2 = 21
Depreciation for the First Year:
- Depreciation for the first year using the sum of years digits method is calculated as:
Depreciation Expense = (Remaining Useful Life / Sum of Years' Digits) * (Original Cost - Salvage Value)
Given:
- Original Cost = Rs. 1,26,000
- Salvage Value = Nil
- Useful Life = 6 years
- Sum of Years' Digits = 21
Calculating for the first year:
- Remaining Useful Life = 6 years
- Depreciation Expense = (6 / 21) * (1,26,000 - 0)
- Depreciation Expense = (6/21) * 1,26,000
- Depreciation Expense = 36,000
Therefore, the Depreciation for the first year under the sum of years digits method will be Rs. 36,000.
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Original cost = Rs. 1,26,000; Salvage value = Nil; Useful life = 6 years. Depreciation for the first year under sum of years digits method will bea)Rs. 6,000b)Rs. 12,000c)Rs. 18,000d)Rs. 36,000Correct answer is option 'D'. Can you explain this answer?
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Original cost = Rs. 1,26,000; Salvage value = Nil; Useful life = 6 years. Depreciation for the first year under sum of years digits method will bea)Rs. 6,000b)Rs. 12,000c)Rs. 18,000d)Rs. 36,000Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Original cost = Rs. 1,26,000; Salvage value = Nil; Useful life = 6 years. Depreciation for the first year under sum of years digits method will bea)Rs. 6,000b)Rs. 12,000c)Rs. 18,000d)Rs. 36,000Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Original cost = Rs. 1,26,000; Salvage value = Nil; Useful life = 6 years. Depreciation for the first year under sum of years digits method will bea)Rs. 6,000b)Rs. 12,000c)Rs. 18,000d)Rs. 36,000Correct answer is option 'D'. Can you explain this answer?.
Original cost = Rs. 1,26,000; Salvage value = Nil; Useful life = 6 years. Depreciation for the first year under sum of years digits method will bea)Rs. 6,000b)Rs. 12,000c)Rs. 18,000d)Rs. 36,000Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Original cost = Rs. 1,26,000; Salvage value = Nil; Useful life = 6 years. Depreciation for the first year under sum of years digits method will bea)Rs. 6,000b)Rs. 12,000c)Rs. 18,000d)Rs. 36,000Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Original cost = Rs. 1,26,000; Salvage value = Nil; Useful life = 6 years. Depreciation for the first year under sum of years digits method will bea)Rs. 6,000b)Rs. 12,000c)Rs. 18,000d)Rs. 36,000Correct answer is option 'D'. Can you explain this answer?.
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