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Depreciation per year: 10,00,000/4 = 2,50,000 Machine is used for 3.5 years so till now 250,000*3.5 years = 8,75,000 depreciation has been charged. Machine on 1st Oct 2020 has a balance of 1,25,000 and is now sold for 1,20,000 which is 5000 lesser than depreciated value.
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