Question

The cost of a machine with life of 10 years was Rs.12 lakh with no salvage value expected at the end of the life of the machine. However, after 5 years, the life of the machine increased by 3 years by incurring refurbishment cost of Rs.1,20,000. What would be the depreciation in the 6th year of this machine?

A Rs.1,20,000
B Rs.1,00,000
C Rs.90,000
D Rs.60,000
E Rs.1,60,000
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