Question

The value of a machine depreciates at the rate of 10% per annum. If its present value is rs. 162000, what will be its worth after 2 years? What was the value of machine 2 years ago (in rs.)?

Answer 1

Answer:

is this straight line method /written down value  method?

as nothing is given lets assume it as straight line method.

162000  -------- value of machinery

 16200  --------- (less) depreciation

--------------

145800 --------1st year value of machine.

 16200 --------- (less) depreciation

--------------

129600  -------- 2nd year value of machinery.

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VALUE OF MACHINERY BEFORE 2 YEARS :

162000    ------------- value of machinery

 20000   -------------(ADD)  1st  year depreciation

 20000   ------------ (ADD)   2nd year depreciation

___________

202000.       ______ value of machinery before 2 years