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    Question

    A machine costing ₹2,00,000 has useful life 10 years,

    residual value ₹20,000. Depreciation under straight line for first year =
    A ₹18,000 Correct Answer Incorrect Answer
    B ₹20,000 Correct Answer Incorrect Answer
    C ₹24,000 Correct Answer Incorrect Answer
    D ₹16,000 Correct Answer Incorrect Answer
    E ₹10,000 Correct Answer Incorrect Answer

    Solution

    Depreciable amount = 2,00,000 − 20,000 = 1,80,000. Annual dep = 1,80,000/10 = ₹18,000.

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