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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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