CA Foundation Exam > CA Foundation Questions > A machine worth Rs. 490740 is depreciated at ...
Start Learning for Free
A machine worth Rs. 490740 is depreciated at 15% of its opening value each year. When its value would reduce by 90?
- a)11 years 6 months
- b)11 years 7 months
- c)11 years 8 months
- d)14 years 2 months (appx)
Correct answer is option 'D'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
A machine worth Rs. 490740 is depreciated at 15% of its opening value ...
Depreciation Calculation:
- Opening value of machine = Rs. 490740
- Depreciation rate = 15%
- Depreciation amount for 1st year = 15% of 490740 = Rs. 73611
- Value of machine after 1st year = 490740 - 73611 = Rs. 417129
- Depreciation amount for 2nd year = 15% of 417129 = Rs. 62569
- Value of machine after 2nd year = 417129 - 62569 = Rs. 354560
- Depreciation amount for 3rd year = 15% of 354560 = Rs. 53184
- Value of machine after 3rd year = 354560 - 53184 = Rs. 301376
- Depreciation amount for 4th year = 15% of 301376 = Rs. 45206
- Value of machine after 4th year = 301376 - 45206 = Rs. 256170
- Depreciation amount for 5th year = 15% of 256170 = Rs. 38425.50
- Value of machine after 5th year = 256170 - 38425.50 = Rs. 217744.50
Finding the year when the value of machine would reduce by 90%:
- We need to find the year when the value of machine would become 10% of its opening value (since it would have reduced by 90%)
- 10% of opening value = 490740 x 0.1 = Rs. 49074
- From the depreciation calculation above, we can see that the value of machine after 5 years is Rs. 217744.50
- So, the value of machine would become less than or equal to Rs. 49074 after 5 years + n years (where n is the number of years we're trying to find)
- 217744.50 x (1 - 15%)^n <=>
- (0.85)^n <=>
- Taking log on both sides: n x log(0.85) <=>
- n <= log(0.225)="">
- n <= 11.514="">
- Therefore, the value of machine would reduce by 90% after approximately 11 years and 6 months.
- Since option 'D' (14 years 2 months) is higher than this, it is not the correct answer.
However, the question asks for the year when the value would reduce by 90%, not the time. So we need to find the value of the machine after 11 years and 6 months to see if it's less than or equal to Rs. 49074.
- Value of machine after 11 years = 490740 x (0.85)^11 = Rs. 99017.26 (approx.)
- Depreciation amount for 12th year = 15% of 99017.26 = Rs. 14852.59
- Value of machine after 12 years = 99017.26 - 14852.59 = Rs. 84164.67
- Depreciation amount for 13th year = 15
- Opening value of machine = Rs. 490740
- Depreciation rate = 15%
- Depreciation amount for 1st year = 15% of 490740 = Rs. 73611
- Value of machine after 1st year = 490740 - 73611 = Rs. 417129
- Depreciation amount for 2nd year = 15% of 417129 = Rs. 62569
- Value of machine after 2nd year = 417129 - 62569 = Rs. 354560
- Depreciation amount for 3rd year = 15% of 354560 = Rs. 53184
- Value of machine after 3rd year = 354560 - 53184 = Rs. 301376
- Depreciation amount for 4th year = 15% of 301376 = Rs. 45206
- Value of machine after 4th year = 301376 - 45206 = Rs. 256170
- Depreciation amount for 5th year = 15% of 256170 = Rs. 38425.50
- Value of machine after 5th year = 256170 - 38425.50 = Rs. 217744.50
Finding the year when the value of machine would reduce by 90%:
- We need to find the year when the value of machine would become 10% of its opening value (since it would have reduced by 90%)
- 10% of opening value = 490740 x 0.1 = Rs. 49074
- From the depreciation calculation above, we can see that the value of machine after 5 years is Rs. 217744.50
- So, the value of machine would become less than or equal to Rs. 49074 after 5 years + n years (where n is the number of years we're trying to find)
- 217744.50 x (1 - 15%)^n <=>
- (0.85)^n <=>
- Taking log on both sides: n x log(0.85) <=>
- n <= log(0.225)="">
- n <= 11.514="">
- Therefore, the value of machine would reduce by 90% after approximately 11 years and 6 months.
- Since option 'D' (14 years 2 months) is higher than this, it is not the correct answer.
However, the question asks for the year when the value would reduce by 90%, not the time. So we need to find the value of the machine after 11 years and 6 months to see if it's less than or equal to Rs. 49074.
- Value of machine after 11 years = 490740 x (0.85)^11 = Rs. 99017.26 (approx.)
- Depreciation amount for 12th year = 15% of 99017.26 = Rs. 14852.59
- Value of machine after 12 years = 99017.26 - 14852.59 = Rs. 84164.67
- Depreciation amount for 13th year = 15
Free Test
FREE
| Start Free Test |
Community Answer
A machine worth Rs. 490740 is depreciated at 15% of its opening value ...
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
A machine worth Rs. 490740 is depreciated at 15% of its opening value each year. When its value would reduce by 90?a)11 years 6 monthsb)11 years 7 monthsc)11 years 8 monthsd)14 years 2 months (appx)Correct answer is option 'D'. Can you explain this answer?
Question Description
A machine worth Rs. 490740 is depreciated at 15% of its opening value each year. When its value would reduce by 90?a)11 years 6 monthsb)11 years 7 monthsc)11 years 8 monthsd)14 years 2 months (appx)Correct 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 A machine worth Rs. 490740 is depreciated at 15% of its opening value each year. When its value would reduce by 90?a)11 years 6 monthsb)11 years 7 monthsc)11 years 8 monthsd)14 years 2 months (appx)Correct 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 A machine worth Rs. 490740 is depreciated at 15% of its opening value each year. When its value would reduce by 90?a)11 years 6 monthsb)11 years 7 monthsc)11 years 8 monthsd)14 years 2 months (appx)Correct answer is option 'D'. Can you explain this answer?.
A machine worth Rs. 490740 is depreciated at 15% of its opening value each year. When its value would reduce by 90?a)11 years 6 monthsb)11 years 7 monthsc)11 years 8 monthsd)14 years 2 months (appx)Correct 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 A machine worth Rs. 490740 is depreciated at 15% of its opening value each year. When its value would reduce by 90?a)11 years 6 monthsb)11 years 7 monthsc)11 years 8 monthsd)14 years 2 months (appx)Correct 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 A machine worth Rs. 490740 is depreciated at 15% of its opening value each year. When its value would reduce by 90?a)11 years 6 monthsb)11 years 7 monthsc)11 years 8 monthsd)14 years 2 months (appx)Correct answer is option 'D'. Can you explain this answer?.
Solutions for A machine worth Rs. 490740 is depreciated at 15% of its opening value each year. When its value would reduce by 90?a)11 years 6 monthsb)11 years 7 monthsc)11 years 8 monthsd)14 years 2 months (appx)Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of A machine worth Rs. 490740 is depreciated at 15% of its opening value each year. When its value would reduce by 90?a)11 years 6 monthsb)11 years 7 monthsc)11 years 8 monthsd)14 years 2 months (appx)Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
A machine worth Rs. 490740 is depreciated at 15% of its opening value each year. When its value would reduce by 90?a)11 years 6 monthsb)11 years 7 monthsc)11 years 8 monthsd)14 years 2 months (appx)Correct answer is option 'D'. Can you explain this answer?, a detailed solution for A machine worth Rs. 490740 is depreciated at 15% of its opening value each year. When its value would reduce by 90?a)11 years 6 monthsb)11 years 7 monthsc)11 years 8 monthsd)14 years 2 months (appx)Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of A machine worth Rs. 490740 is depreciated at 15% of its opening value each year. When its value would reduce by 90?a)11 years 6 monthsb)11 years 7 monthsc)11 years 8 monthsd)14 years 2 months (appx)Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A machine worth Rs. 490740 is depreciated at 15% of its opening value each year. When its value would reduce by 90?a)11 years 6 monthsb)11 years 7 monthsc)11 years 8 monthsd)14 years 2 months (appx)Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup