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

Dear Student,

◆ Answer -

Scrap value of the machinery = Rs 65000

● Explanation -

Residual/scrap value of machinery is -

Scrap value = purchase value - 15×annual charge

Scrap value = 200000 - 9000×15

Scrap value = 200000 - 135000

Scrap value = Rs 65000

Hence, scrap value of machinery is Rs 65000.

Thanks dear for asking. Hope this is helpful to you...