Question

the useful life of a machine is estimated to be 10 years and cost 10000 .rate of deperication is 10% p.a. the scraph value at the end of its life is

Answer 1

Answer:

Scrap value = 0

Step-by-step explanation:

Depreciation for 1 year = 10,000 × 10% = 1000

There total depreciation for 10years = 1,000×10 = 10,000 (ie. it equals the cost of machinery)

Therefore scrap value becomes zero