Question

*Life of a machine is 10 years and its purchase price is 20000, installation charges 4000, and its scrap value is 6000. Find the value of depreciation under fixed installation method.*

1️⃣ 2000
2️⃣ 1000
3️⃣ 1800
4️⃣ 2400​

Answer 1

Answer:

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Explanation:

Deprication by fixed installment method

=cost of machine - scrap/ residual value

useful life

Total cost of machine =20,000+4,000

=24,000

(including installation charges )

Depriciation= 24,000 –6,000

10

= 1,800