Question

3. Annual Depreciation of Machine is Rs. 40,000, cost of Machine is Rs.5,00,000 rate of Deprecation
according to straight line method :
a) 9%
b) 18%
c) 16%
d) 8%​

Answer 1

Answer:

16% rate of description

Answer 2

Answer:

The scrap value can also be used to calculate the depreciation expense. Using our example above, if the company estimated a $3,000 residual value for the machinery at the end of 8 years, then it can calculate its depreciation expense per year to be ($75,000 - $3,000) / 8 = $9,000