Question

if the opening written down value of a machine is 500000 find the value of depreciation at 10% for the current year​

Answer 1

Explanation:

It is given that

Present value = 500000

Reduced value = 364500

Rate of depreciation = 10% p.a.

Consider n years as the period

We know that

A/P = (1−r/100)

n

Substituting the values

364500/500000=(1−10/100)

n

By further calculation

(9/10)

n

=729/1000=(9/10)

3

So we get

n=3

Therefore, the period in which its value be reduced to 364500 is 3 years.

Answer 2

The answer is Rs. 50,000.

Given,

Present value = Rs. 5,00,000

The rate of depreciation = 10%

To Find,

The value of depreciation for the current year​ =?

Solution,

The rate of depreciation = 10%

The value of depreciation = 10% of the present value

The value of depreciation = 10% of 5,00,000

The value of depreciation = (10 / 100) x 5,00,000

The value of depreciation =  5,00,000 / 10

The value of depreciation = Rs. 50,000

Hence, if the opening written down value of a machine is 500000 then the value of depreciation at 10% for the current year​ is Rs. 50,000.

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