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A new machine costing Rs.1 lakh was purchased by a company to manufacture a special product. Its useful life is estimated to be 5 years and scrap value at Rs.10000. The production plan for the next 5 years using the above machine is as follows:
 
Q.The depreciation expenditure for the 2nd year under units-of-production method will be
  • a)
    Rs.6,250
  • b)
    Rs.12,500
  • c)
    Rs.15,000
  • d)
    Rs.25,000
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
A new machine costing Rs.1 lakh was purchased by a company to manufact...
Total unit of production for 5 year is
5000+10000+12000+20000+25000=72000

depreciation by unit method = (cost - scrap value)/ total*year of unit produced

D.p. value = (100000-10000)/72000*10000=12,500 option b is answer
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Most Upvoted Answer
A new machine costing Rs.1 lakh was purchased by a company to manufact...
Total unit of production for 5 year is
5000+10000+12000+20000+25000=72000

depreciation by unit method = (cost - scrap value)/ total*yaer of unit produced

D.p. value = (100000-10000)/72000*10000=12500 option b is answer
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A new machine costing Rs.1 lakh was purchased by a company to manufacture a special product. Its useful life is estimated to be 5 years and scrap value at Rs.10000. The production plan for the next 5 years using the above machine is as follows:Q.The depreciation expenditure for the 2nd year under units-of-production method will bea)Rs.6,250b)Rs.12,500c)Rs.15,000d)Rs.25,000Correct answer is option 'B'. Can you explain this answer?
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A new machine costing Rs.1 lakh was purchased by a company to manufacture a special product. Its useful life is estimated to be 5 years and scrap value at Rs.10000. The production plan for the next 5 years using the above machine is as follows:Q.The depreciation expenditure for the 2nd year under units-of-production method will bea)Rs.6,250b)Rs.12,500c)Rs.15,000d)Rs.25,000Correct answer is option 'B'. 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 new machine costing Rs.1 lakh was purchased by a company to manufacture a special product. Its useful life is estimated to be 5 years and scrap value at Rs.10000. The production plan for the next 5 years using the above machine is as follows:Q.The depreciation expenditure for the 2nd year under units-of-production method will bea)Rs.6,250b)Rs.12,500c)Rs.15,000d)Rs.25,000Correct answer is option 'B'. 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 new machine costing Rs.1 lakh was purchased by a company to manufacture a special product. Its useful life is estimated to be 5 years and scrap value at Rs.10000. The production plan for the next 5 years using the above machine is as follows:Q.The depreciation expenditure for the 2nd year under units-of-production method will bea)Rs.6,250b)Rs.12,500c)Rs.15,000d)Rs.25,000Correct answer is option 'B'. Can you explain this answer?.
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