A machine is purchased on 1st April,2018 for Rs.80,000. expenses incurred on its installation is Rs.20,000. the residual value at the end of its expected useful life of 4 years is estimated at Rs.10,000. the amount of depreciation under straight line method for the year ended on 31st March,2019 will be.
(a) Rs.22,500 (b) Rs.20,000 (c) Rs.17,500 (d) Rs.13,125
Answers
Answer:
Depreciation = 22,500
Step-by-step explanation:
Given a specified quantity of goods produced, a cost function is a mathematical formula that may be used to determine the overall cost of production. Here, the cost function will be thoroughly examined. a way to show unit expenses in relation to how many units of one or more were generated during a construction project. The average of the numbers is the mean. Calculating is simple: add up all the numbers, then divide by the total amount of numbers. To put it another way, it is the total divided by the number.
Depreciation = cost - estimated realizable or scrap value ÷ no. Of years of expected useful life.
Depreciation = (80,000 + 20,000) - 10,000 ÷ 4 years
Depreciation = 1,00,000 - 10,000 ÷ 4 years.
Depreciation = 90,000 ÷ 4 years
Depreciation = 22,500
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