Question
XYZ Ltd. uses Written Down Value (WDV) method for
depreciation. It acquires a machine for ₹10 lakhs, has a salvage value of ₹1 lakh and charges 20% depreciation. What is the value of the machine after 2 years?Solution
Year 1: ₹10,00,000 – 20% = ₹8,00,000 Year 2: ₹8,00,000 – 20% = ₹6,40,000
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