Question

A machine costing Rs. 2,40,000 is depreciated at 15% per annum on reducing balances method. Find the value of the machine after 6 years. Also find the depreciation amount for the sixth year

Answer 1

Answer:

For 1 year 240000 × 15% = 36000

240000 - 36000 =204000

For 2 year 204000 × 15% = 30600

204000 - 30600 = 173400

For 3 year 173400 × 15% = 26010

173400 - 26010 = 147390

For 4 year 147390 × 15% = 22108

147390 - 22108 = 125282

For 5 year 125282 × 15% = 18792

125282 - 18792 = 106490

For 6 year 106490 × 15% = 15973

106490 - 15973 = 90517

Explanation:

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