Question
A company purchases an intangible asset (software license) for ₹20 lakhs, with a legal validity of 5 years and probable economic benefit of 8 years. As per accounting principles, over what period should the asset be amortized?
More Depreciation Questions
- Under the Written Down Value (WDV) method, depreciation is:
- Which depreciation method is most suitable for assets like mines, quarries, etc.?
- A plant was purchased on 1st April 2021 for ₹5,00,000. Depreciation is charged at 15% p.a. under the WDV method. On 1st October 2023, the plant was sold fo...
- Under which condition will no depreciation be charged on a fixed asset during a financial year?
- A plant was purchased for ₹10,00,000. After 4 years, its book value stands at ₹6,56,100 using the diminishing balance method. The annual rate of depreciati...
- A machine was purchased for ₹1,00,000. Depreciation is charged at 10% per annum under the Diminishing Balance Method. The book value of the machine at the ...
- A company buys a machine for ₹12,00,000 and expects to use it for 8 years with residual value ₹80,000. Under straight-line method, annual depreciation is:
- Which method of depreciation is NOT recognized by the Companies Act, 2013?
- A machine costing ₹8,00,000 has a salvage value of ₹80,000 after 10 years. The company follows Straight Line Method (SLM). During the 4th year, it switches...
- 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% depreci...
Hey! Ask a query
Please enter email id
The email must be a valid email address.
Please enter Mobile Number
Please enter valid Mobile Number
Please enter your Doubt
