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    Question

    A company purchased machinery on 1st April 2021 for

    ₹12,00,000 with an estimated residual value of ₹1,20,000 and useful life of 6 years. Using straight-line method as per Ind-AS 16, what should be the annual depreciation charge?
    A ₹1,80,000 Correct Answer Incorrect Answer
    B ₹2,00,000 Correct Answer Incorrect Answer
    C ₹2,10,000 Correct Answer Incorrect Answer
    D ₹1,60,000 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Depreciation = (Cost – Residual Value) / Useful Life = (12,00,000 – 1,20,000) / 6 = ₹1,80,000

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