A machine is depreciated at the rate of 20% on reducing balance. The original cost of the machine was Rs. 100000 and its ultimate scrap value was Rs. 30000. The effective life of the machine is
  • a)
    4.5 years (appx.)
  • b)
    5.4 years (appx.)
  • c)
    5 years (appx.)
  • d)
    none of these
Correct answer is option 'B'. Can you explain this answer?

CA Foundation Question

Fsgssg Yidxd
Feb 07, 2019
How to find log.3 & log.8

Sagarika Shinde
Aug 28, 2018
Net worth (value)=initial value *(1-i)^n
Where, I is the rate of depreciation/100 and n is the number of conversion period
I=0.2
Fv=30000, initial value=100000


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