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A machinery worth 10000 is depreciated at rate of 10% pa for first 3 years and 8% for next 2 years. Find its value after 5 years. (A) 5170.25 (B)7170.25 (C)6170.25 (D)8170.25?
Most Upvoted Answer
A machinery worth 10000 is depreciated at rate of 10% pa for first 3 y...
Solution:
Given,
Original value of machinery = Rs. 10000
Depreciation rate for first 3 years = 10%
Depreciation rate for next 2 years = 8%
Let's calculate the depreciation for the first 3 years.
Depreciation for the first year = (10/100) * 10000 = Rs. 1000
Depreciation for the second year = (10/100) * 9000 = Rs. 900
Depreciation for the third year = (10/100) * 8100 = Rs. 810
Now, the book value of the machinery at the end of 3 years = 10000 - (1000+900+810) = Rs. 7190
Let's calculate the depreciation for the next 2 years.
Depreciation for the fourth year = (8/100) * 7190 = Rs. 575.2
Depreciation for the fifth year = (8/100) * 6614.8 = Rs. 529.18
Now, the book value of the machinery at the end of 5 years = 6614.8 - (575.2 + 529.18) = Rs. 5510.42
Hence, the value of the machinery after 5 years is Rs. 5510.42. Therefore, the correct option is (A) 5170.25.
Note: In depreciation calculation, we need to subtract the depreciation amount from the original value of the machinery to get the book value.
Given,
Original value of machinery = Rs. 10000
Depreciation rate for first 3 years = 10%
Depreciation rate for next 2 years = 8%
Let's calculate the depreciation for the first 3 years.
Depreciation for the first year = (10/100) * 10000 = Rs. 1000
Depreciation for the second year = (10/100) * 9000 = Rs. 900
Depreciation for the third year = (10/100) * 8100 = Rs. 810
Now, the book value of the machinery at the end of 3 years = 10000 - (1000+900+810) = Rs. 7190
Let's calculate the depreciation for the next 2 years.
Depreciation for the fourth year = (8/100) * 7190 = Rs. 575.2
Depreciation for the fifth year = (8/100) * 6614.8 = Rs. 529.18
Now, the book value of the machinery at the end of 5 years = 6614.8 - (575.2 + 529.18) = Rs. 5510.42
Hence, the value of the machinery after 5 years is Rs. 5510.42. Therefore, the correct option is (A) 5170.25.
Note: In depreciation calculation, we need to subtract the depreciation amount from the original value of the machinery to get the book value.
Community Answer
A machinery worth 10000 is depreciated at rate of 10% pa for first 3 y...
Option (C) 6170.25
EXPLANATION:
Amount at the end of 3 years = 10,000 (1+0.10/1)³
= 7290
Amount at the end of 2 years = 7290 (1+0.08/1)²
= 6170.256
Therefore, Amount at the end of 5 years is 6170.256
EXPLANATION:
Amount at the end of 3 years = 10,000 (1+0.10/1)³
= 7290
Amount at the end of 2 years = 7290 (1+0.08/1)²
= 6170.256
Therefore, Amount at the end of 5 years is 6170.256
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A machinery worth 10000 is depreciated at rate of 10% pa for first 3 years and 8% for next 2 years. Find its value after 5 years. (A) 5170.25 (B)7170.25 (C)6170.25 (D)8170.25?
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A machinery worth 10000 is depreciated at rate of 10% pa for first 3 years and 8% for next 2 years. Find its value after 5 years. (A) 5170.25 (B)7170.25 (C)6170.25 (D)8170.25? 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 machinery worth 10000 is depreciated at rate of 10% pa for first 3 years and 8% for next 2 years. Find its value after 5 years. (A) 5170.25 (B)7170.25 (C)6170.25 (D)8170.25? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A machinery worth 10000 is depreciated at rate of 10% pa for first 3 years and 8% for next 2 years. Find its value after 5 years. (A) 5170.25 (B)7170.25 (C)6170.25 (D)8170.25?.
A machinery worth 10000 is depreciated at rate of 10% pa for first 3 years and 8% for next 2 years. Find its value after 5 years. (A) 5170.25 (B)7170.25 (C)6170.25 (D)8170.25? 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 machinery worth 10000 is depreciated at rate of 10% pa for first 3 years and 8% for next 2 years. Find its value after 5 years. (A) 5170.25 (B)7170.25 (C)6170.25 (D)8170.25? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A machinery worth 10000 is depreciated at rate of 10% pa for first 3 years and 8% for next 2 years. Find its value after 5 years. (A) 5170.25 (B)7170.25 (C)6170.25 (D)8170.25?.
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