Question

Abc co. Purchased machinery for rs. 200000. The company charged rs. 9000 annually. You are required to calculate residual or scrap value of machinery. The life of the machine is 15 years

Answer 1

Answer:

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Answer 2

Dear Student,

◆ Answer -

Scrap value of the machinery = Rs 65000

● Explanation -

Residual/scrap value of machinery is -

Scrap value of machinery = purchase value - 15×annual charge

Scrap value of machinery = 200000 - 9000×15

Scrap value of machinery = 200000 - 135000

Scrap value of machinery = Rs 65000

Hence, scrap value of machinery is Rs 65000.

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