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    Question

    A machine costing ₹8,00,000 has a useful life of 5

    years and scrap value of ₹50,000. Using WDV method at 30%, what will be the book value at the end of year 2?
    A ₹3,92,000 Correct Answer Incorrect Answer
    B ₹3,20,000 Correct Answer Incorrect Answer
    C ₹4,48,000 Correct Answer Incorrect Answer
    D ₹5,60,000 Correct Answer Incorrect Answer

    Solution

    Year 1: Depreciation = ₹8,00,000 × 30% = ₹2,40,000; WDV = ₹5,60,000. Year 2: Depreciation = ₹5,60,000 × 30% = ₹1,68,000; WDV = ₹5,60,000 - ₹1,68,000 = ₹3,92,000.

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