📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      A trucking company purchases a delivery truck for

      ₹12,00,000. It expects the truck to deliver 3,00,000 km over its life and have a salvage value of ₹1,20,000. In its first year, the truck travels 60,000 km. Compute the depreciation expense for the first year using the Units of Production method.
      A ₹2,17,000 Correct Answer Incorrect Answer
      B ₹2,40,000 Correct Answer Incorrect Answer
      C ₹2,16,000 Correct Answer Incorrect Answer
      D ₹1,80,000 Correct Answer Incorrect Answer
      E ₹2,64,000 Correct Answer Incorrect Answer

      Solution

      • Dep per km = (12,00,000 – 1,20,000) ÷ 3,00,000 = ₹3.60. • Expense = 60,000 × 3.60 = ₹2,16,000.

      Practice Next
      More Accounts Questions
      ask-question