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A machine is purchased for ₹10,000,00/-and has an estimate life of 10 years. The salvage value at the end of 10 years is ₹1,50,000/-. The book value of the machine at the end of 5 years using general straight line method of evaluation of depreciation is
- a)₹ 4,75,000/-
- b)₹ 5,75,000/-
- c)₹ 6,50,000/-
- d)₹ 8,50,000/-
Correct answer is option 'B'. Can you explain this answer?
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Verified Answer
A machine is purchased for 10,000,00/-and has an estimate life of 10 y...
Cost price of machine = ₹ 1000000 Salvage value = ₹ 150000
at end of 10 years
∴ Depreciation per year
∴ Book value after to 5 years
= 1000000-85000x5
= ₹ 575000
at end of 10 years
∴ Depreciation per year
∴ Book value after to 5 years
= 1000000-85000x5
= ₹ 575000
Most Upvoted Answer
A machine is purchased for 10,000,00/-and has an estimate life of 10 y...
Given information:
- Cost of the machine = Rs. 10,000,000/-
- Estimated life of the machine = 10 years
- Salvage value = Rs. 150,000/-
To find: Book value of the machine at the end of 5 years using the straight-line method of depreciation
Solution:
Straight-line method of depreciation:
In the straight-line method of depreciation, the same amount of depreciation is charged every year over the useful life of the asset.
Depreciation per year = (Cost of the asset - Salvage value)/Estimated life of the asset
= (10,000,000 - 150,000)/10
= Rs. 985,000/-
Book value at the end of 5 years:
Book value = Cost of the asset - Total depreciation charged till that year
= Cost of the asset - Depreciation per year * Number of years
= 10,000,000 - 985,000 * 5
= Rs. 5,075,000/-
Therefore, the book value of the machine at the end of 5 years using the straight-line method of depreciation is Rs. 5,075,000/-. The correct option is B.
- Cost of the machine = Rs. 10,000,000/-
- Estimated life of the machine = 10 years
- Salvage value = Rs. 150,000/-
To find: Book value of the machine at the end of 5 years using the straight-line method of depreciation
Solution:
Straight-line method of depreciation:
In the straight-line method of depreciation, the same amount of depreciation is charged every year over the useful life of the asset.
Depreciation per year = (Cost of the asset - Salvage value)/Estimated life of the asset
= (10,000,000 - 150,000)/10
= Rs. 985,000/-
Book value at the end of 5 years:
Book value = Cost of the asset - Total depreciation charged till that year
= Cost of the asset - Depreciation per year * Number of years
= 10,000,000 - 985,000 * 5
= Rs. 5,075,000/-
Therefore, the book value of the machine at the end of 5 years using the straight-line method of depreciation is Rs. 5,075,000/-. The correct option is B.
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A machine is purchased for 10,000,00/-and has an estimate life of 10 years. The salvage value at the end of 10 years is 1,50,000/-. The book value of the machine at the end of 5 years using general straight line method of evaluation of depreciation isa) 4,75,000/-b) 5,75,000/-c) 6,50,000/-d)8,50,000/-Correct answer is option 'B'. Can you explain this answer?
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A machine is purchased for 10,000,00/-and has an estimate life of 10 years. The salvage value at the end of 10 years is 1,50,000/-. The book value of the machine at the end of 5 years using general straight line method of evaluation of depreciation isa) 4,75,000/-b) 5,75,000/-c) 6,50,000/-d)8,50,000/-Correct answer is option 'B'. 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 A machine is purchased for 10,000,00/-and has an estimate life of 10 years. The salvage value at the end of 10 years is 1,50,000/-. The book value of the machine at the end of 5 years using general straight line method of evaluation of depreciation isa) 4,75,000/-b) 5,75,000/-c) 6,50,000/-d)8,50,000/-Correct answer is option 'B'. 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 A machine is purchased for 10,000,00/-and has an estimate life of 10 years. The salvage value at the end of 10 years is 1,50,000/-. The book value of the machine at the end of 5 years using general straight line method of evaluation of depreciation isa) 4,75,000/-b) 5,75,000/-c) 6,50,000/-d)8,50,000/-Correct answer is option 'B'. Can you explain this answer?.
A machine is purchased for 10,000,00/-and has an estimate life of 10 years. The salvage value at the end of 10 years is 1,50,000/-. The book value of the machine at the end of 5 years using general straight line method of evaluation of depreciation isa) 4,75,000/-b) 5,75,000/-c) 6,50,000/-d)8,50,000/-Correct answer is option 'B'. 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 A machine is purchased for 10,000,00/-and has an estimate life of 10 years. The salvage value at the end of 10 years is 1,50,000/-. The book value of the machine at the end of 5 years using general straight line method of evaluation of depreciation isa) 4,75,000/-b) 5,75,000/-c) 6,50,000/-d)8,50,000/-Correct answer is option 'B'. 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 A machine is purchased for 10,000,00/-and has an estimate life of 10 years. The salvage value at the end of 10 years is 1,50,000/-. The book value of the machine at the end of 5 years using general straight line method of evaluation of depreciation isa) 4,75,000/-b) 5,75,000/-c) 6,50,000/-d)8,50,000/-Correct answer is option 'B'. Can you explain this answer?.
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A machine is purchased for 10,000,00/-and has an estimate life of 10 years. The salvage value at the end of 10 years is 1,50,000/-. The book value of the machine at the end of 5 years using general straight line method of evaluation of depreciation isa) 4,75,000/-b) 5,75,000/-c) 6,50,000/-d)8,50,000/-Correct answer is option 'B'. Can you explain this answer?, a detailed solution for A machine is purchased for 10,000,00/-and has an estimate life of 10 years. The salvage value at the end of 10 years is 1,50,000/-. The book value of the machine at the end of 5 years using general straight line method of evaluation of depreciation isa) 4,75,000/-b) 5,75,000/-c) 6,50,000/-d)8,50,000/-Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of A machine is purchased for 10,000,00/-and has an estimate life of 10 years. The salvage value at the end of 10 years is 1,50,000/-. The book value of the machine at the end of 5 years using general straight line method of evaluation of depreciation isa) 4,75,000/-b) 5,75,000/-c) 6,50,000/-d)8,50,000/-Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A machine is purchased for 10,000,00/-and has an estimate life of 10 years. The salvage value at the end of 10 years is 1,50,000/-. The book value of the machine at the end of 5 years using general straight line method of evaluation of depreciation isa) 4,75,000/-b) 5,75,000/-c) 6,50,000/-d)8,50,000/-Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice Civil Engineering (CE) tests.
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