Question

The value of macinery depriciates every year by 20%.What would be the value of the machinery brought for rs 6250 at the end of 3 years?

Answer 1

cost of machinery -6250
less: 1st year depreciation @20%- 1250
amount- 5000
less: 2nd year dep @20%- 1000
amount- 4000
less: 3rd year dep @20% -800

value of machinery @ the end of 3rd year =Rs.3200