A plant was purchased on 01-04-2010 for Rs.3,50,000. The useful life was estimated to be 5 years and scrap value as Rs.50,000. Calculate the rate of depreciation under Straight line method.
(a) 17.14% (b) 20% (c) 15% (d) 17.5%
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(a) 17.14% is the correct answer
Depreciation expense = (3,50,000-50,000)/5 years = Rs 60,000
Rate of Depreciation = 60,000/3,50,000 = 17.14%
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