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    • Question

      A company purchases machinery for ₹5,00,000. It

      estimates useful life 5 years with zero scrap. Under straight-line method, annual depreciation is:
      A ₹50,000 Correct Answer Incorrect Answer
      B ₹1,00,000 Correct Answer Incorrect Answer
      C ₹75,000 Correct Answer Incorrect Answer
      D ₹1,25,000 Correct Answer Incorrect Answer
      E ₹20,000 Correct Answer Incorrect Answer

      Solution

      Straight-line depreciation = (Cost − Scrap)/Life = (5,00,000 − 0)/5 = ₹1,00,000 per year.

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