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Calculate depreciation for the 4th year under sum of years digits methodCost of the asset Rs. 10,00,000 Life Time 5 years Salvage value 10%
- a)Rs. 60,000
- b)Rs. 1,80,000
- c)Rs. 2,40,000
- d)Rs. 1,20,00
Correct answer is option 'D'. Can you explain this answer?
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Calculate depreciation for the 4th year undersum of years digits metho...
Depreciation Calculation for the 4th Year using Sum of Years Digits Method
Given:
Cost of the asset = Rs. 10,00,000
Life Time = 5 years
Salvage value = 10%
Formula Used:
Depreciation expense = (Remaining life of asset / Sum of years digits) x (Cost of asset - Salvage value)
Step-by-Step Solution:
1. Calculate the Sum of Years Digits (SYD) for the asset using the formula below:
SYD = n(n+1)/2
where n is the life of the asset
SYD = 5(5+1)/2 = 15
2. Determine the remaining life of the asset at the beginning of the 4th year:
Remaining life = Life time - Number of years passed
Remaining life = 5 - 3
Remaining life = 2
3. Substitute the values in the formula to calculate the depreciation expense for the 4th year:
Depreciation expense = (Remaining life of asset / Sum of years digits) x (Cost of asset - Salvage value)
Depreciation expense = (2/15) x (10,00,000 - 10% of 10,00,000)
Depreciation expense = (2/15) x (10,00,000 - 1,00,000)
Depreciation expense = (2/15) x 9,00,000
Depreciation expense = Rs. 1,20,000
Therefore, the correct answer is option D, which is Rs. 1,20,000.
Given:
Cost of the asset = Rs. 10,00,000
Life Time = 5 years
Salvage value = 10%
Formula Used:
Depreciation expense = (Remaining life of asset / Sum of years digits) x (Cost of asset - Salvage value)
Step-by-Step Solution:
1. Calculate the Sum of Years Digits (SYD) for the asset using the formula below:
SYD = n(n+1)/2
where n is the life of the asset
SYD = 5(5+1)/2 = 15
2. Determine the remaining life of the asset at the beginning of the 4th year:
Remaining life = Life time - Number of years passed
Remaining life = 5 - 3
Remaining life = 2
3. Substitute the values in the formula to calculate the depreciation expense for the 4th year:
Depreciation expense = (Remaining life of asset / Sum of years digits) x (Cost of asset - Salvage value)
Depreciation expense = (2/15) x (10,00,000 - 10% of 10,00,000)
Depreciation expense = (2/15) x (10,00,000 - 1,00,000)
Depreciation expense = (2/15) x 9,00,000
Depreciation expense = Rs. 1,20,000
Therefore, the correct answer is option D, which is Rs. 1,20,000.
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Calculate depreciation for the 4th year undersum of years digits metho...
(machine value - scrape value)×2÷15(100000 -100000)×2÷15900000×2÷151800000÷15120000
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Calculate depreciation for the 4th year undersum of years digits methodCost of the asset Rs. 10,00,000 Life Time 5 years Salvage value 10%a)Rs. 60,000b)Rs. 1,80,000c)Rs. 2,40,000d)Rs. 1,20,00Correct answer is option 'D'. Can you explain this answer?
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Calculate depreciation for the 4th year undersum of years digits methodCost of the asset Rs. 10,00,000 Life Time 5 years Salvage value 10%a)Rs. 60,000b)Rs. 1,80,000c)Rs. 2,40,000d)Rs. 1,20,00Correct 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 Calculate depreciation for the 4th year undersum of years digits methodCost of the asset Rs. 10,00,000 Life Time 5 years Salvage value 10%a)Rs. 60,000b)Rs. 1,80,000c)Rs. 2,40,000d)Rs. 1,20,00Correct 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 Calculate depreciation for the 4th year undersum of years digits methodCost of the asset Rs. 10,00,000 Life Time 5 years Salvage value 10%a)Rs. 60,000b)Rs. 1,80,000c)Rs. 2,40,000d)Rs. 1,20,00Correct answer is option 'D'. Can you explain this answer?.
Calculate depreciation for the 4th year undersum of years digits methodCost of the asset Rs. 10,00,000 Life Time 5 years Salvage value 10%a)Rs. 60,000b)Rs. 1,80,000c)Rs. 2,40,000d)Rs. 1,20,00Correct 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 Calculate depreciation for the 4th year undersum of years digits methodCost of the asset Rs. 10,00,000 Life Time 5 years Salvage value 10%a)Rs. 60,000b)Rs. 1,80,000c)Rs. 2,40,000d)Rs. 1,20,00Correct 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 Calculate depreciation for the 4th year undersum of years digits methodCost of the asset Rs. 10,00,000 Life Time 5 years Salvage value 10%a)Rs. 60,000b)Rs. 1,80,000c)Rs. 2,40,000d)Rs. 1,20,00Correct answer is option 'D'. Can you explain this answer?.
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