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A machine purchased for Rs. 5, 00,000 has an estimated working life of 10,000 hours, scrap value estimated Rs. 1, 00,000. Their anticipated pattern of working hours is as follows:
Year Hours (p.a)
1-2 1500
3-6 1000
7-10 750
Depreciation for the third year would be:
Year Hours (p.a)
1-2 1500
3-6 1000
7-10 750
Depreciation for the third year would be:
- a)Rs. 30,000
- b)Rs. 37,500
- c)Rs. 40,000
- d)Rs. 45,000
Correct answer is option 'C'. Can you explain this answer?
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A machine purchased for Rs. 5, 00,000 has an estimated working life of...
Depreciation for the Third Year
Given Data:
Purchase Cost (P) = Rs. 5,00,000
Scrap Value (S) = Rs. 1,00,000
Useful Life (UL) = 10,000 hours
Anticipated Working Hours:
Year 1-2 = 1500 hours p.a
Year 3-6 = 1000 hours p.a
Year 7-10 = 750 hours p.a
Step 1: Calculate Depreciable Cost (DC)
DC = Purchase Cost (P) - Scrap Value (S)
DC = Rs. 5,00,000 - Rs. 1,00,000 = Rs. 4,00,000
Step 2: Calculate Depreciation Rate (DR)
DR = 100% / Useful Life (UL)
DR = 100% / 10,000 hours = 1%
Step 3: Calculate Depreciation for each year
Year 1-2:
Depreciation = Depreciable Cost (DC) x Depreciation Rate (DR)
Depreciation = Rs. 4,00,000 x 1% x 1500 hours p.a
Depreciation = Rs. 6,000 p.a
Year 3-6:
Depreciation = Depreciable Cost (DC) x Depreciation Rate (DR)
Depreciation = Rs. 4,00,000 x 1% x 1000 hours p.a
Depreciation = Rs. 4,000 p.a
Total Depreciation for 4 years = Rs. 16,000
Year 7-10:
Depreciation = Depreciable Cost (DC) x Depreciation Rate (DR)
Depreciation = Rs. 4,00,000 x 1% x 750 hours p.a
Depreciation = Rs. 3,000 p.a
Total Depreciation for 4 years = Rs. 12,000
Step 4: Calculate Depreciation for the Third Year
As we need to calculate the depreciation for the third year, we need to add the depreciation of Year 1-2 and Year 3-6 and subtract it from the total depreciation of Year 7-10.
Depreciation for the Third Year = Total Depreciation for Year 7-10 - Total Depreciation for Year 1-2 - Total Depreciation for Year 3-6
Depreciation for the Third Year = Rs. 12,000 - Rs. 6,000 - Rs. 16,000
Depreciation for the Third Year = Rs. 40,000
Therefore, the correct answer is option 'C'. Rs. 40,000.
Given Data:
Purchase Cost (P) = Rs. 5,00,000
Scrap Value (S) = Rs. 1,00,000
Useful Life (UL) = 10,000 hours
Anticipated Working Hours:
Year 1-2 = 1500 hours p.a
Year 3-6 = 1000 hours p.a
Year 7-10 = 750 hours p.a
Step 1: Calculate Depreciable Cost (DC)
DC = Purchase Cost (P) - Scrap Value (S)
DC = Rs. 5,00,000 - Rs. 1,00,000 = Rs. 4,00,000
Step 2: Calculate Depreciation Rate (DR)
DR = 100% / Useful Life (UL)
DR = 100% / 10,000 hours = 1%
Step 3: Calculate Depreciation for each year
Year 1-2:
Depreciation = Depreciable Cost (DC) x Depreciation Rate (DR)
Depreciation = Rs. 4,00,000 x 1% x 1500 hours p.a
Depreciation = Rs. 6,000 p.a
Year 3-6:
Depreciation = Depreciable Cost (DC) x Depreciation Rate (DR)
Depreciation = Rs. 4,00,000 x 1% x 1000 hours p.a
Depreciation = Rs. 4,000 p.a
Total Depreciation for 4 years = Rs. 16,000
Year 7-10:
Depreciation = Depreciable Cost (DC) x Depreciation Rate (DR)
Depreciation = Rs. 4,00,000 x 1% x 750 hours p.a
Depreciation = Rs. 3,000 p.a
Total Depreciation for 4 years = Rs. 12,000
Step 4: Calculate Depreciation for the Third Year
As we need to calculate the depreciation for the third year, we need to add the depreciation of Year 1-2 and Year 3-6 and subtract it from the total depreciation of Year 7-10.
Depreciation for the Third Year = Total Depreciation for Year 7-10 - Total Depreciation for Year 1-2 - Total Depreciation for Year 3-6
Depreciation for the Third Year = Rs. 12,000 - Rs. 6,000 - Rs. 16,000
Depreciation for the Third Year = Rs. 40,000
Therefore, the correct answer is option 'C'. Rs. 40,000.
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A machine purchased for Rs. 5, 00,000 has an estimated working life of...
500000-100000=400000 400000×1000=40000000 40000000=10000=40000
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A machine purchased for Rs. 5, 00,000 has an estimated working life of 10,000 hours, scrap value estimated Rs. 1, 00,000. Their anticipated pattern of working hours is as follows:Year Hours (p.a)1-2 15003-6 10007-10 750Depreciation for the third year would be:a)Rs. 30,000b)Rs. 37,500c)Rs. 40,000d)Rs. 45,000Correct answer is option 'C'. Can you explain this answer?
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A machine purchased for Rs. 5, 00,000 has an estimated working life of 10,000 hours, scrap value estimated Rs. 1, 00,000. Their anticipated pattern of working hours is as follows:Year Hours (p.a)1-2 15003-6 10007-10 750Depreciation for the third year would be:a)Rs. 30,000b)Rs. 37,500c)Rs. 40,000d)Rs. 45,000Correct answer is option 'C'. 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 purchased for Rs. 5, 00,000 has an estimated working life of 10,000 hours, scrap value estimated Rs. 1, 00,000. Their anticipated pattern of working hours is as follows:Year Hours (p.a)1-2 15003-6 10007-10 750Depreciation for the third year would be:a)Rs. 30,000b)Rs. 37,500c)Rs. 40,000d)Rs. 45,000Correct answer is option 'C'. 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 purchased for Rs. 5, 00,000 has an estimated working life of 10,000 hours, scrap value estimated Rs. 1, 00,000. Their anticipated pattern of working hours is as follows:Year Hours (p.a)1-2 15003-6 10007-10 750Depreciation for the third year would be:a)Rs. 30,000b)Rs. 37,500c)Rs. 40,000d)Rs. 45,000Correct answer is option 'C'. Can you explain this answer?.
A machine purchased for Rs. 5, 00,000 has an estimated working life of 10,000 hours, scrap value estimated Rs. 1, 00,000. Their anticipated pattern of working hours is as follows:Year Hours (p.a)1-2 15003-6 10007-10 750Depreciation for the third year would be:a)Rs. 30,000b)Rs. 37,500c)Rs. 40,000d)Rs. 45,000Correct answer is option 'C'. 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 purchased for Rs. 5, 00,000 has an estimated working life of 10,000 hours, scrap value estimated Rs. 1, 00,000. Their anticipated pattern of working hours is as follows:Year Hours (p.a)1-2 15003-6 10007-10 750Depreciation for the third year would be:a)Rs. 30,000b)Rs. 37,500c)Rs. 40,000d)Rs. 45,000Correct answer is option 'C'. 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 purchased for Rs. 5, 00,000 has an estimated working life of 10,000 hours, scrap value estimated Rs. 1, 00,000. Their anticipated pattern of working hours is as follows:Year Hours (p.a)1-2 15003-6 10007-10 750Depreciation for the third year would be:a)Rs. 30,000b)Rs. 37,500c)Rs. 40,000d)Rs. 45,000Correct answer is option 'C'. Can you explain this answer?.
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