EduFarming
Your list · 0हिं

Type at least two letters. Press Esc to close.

↑↓ navigate↵ openTAB cycle filter

EMI, CAGR & Depreciation · Question 56 of 66

What is the machine's book value after 3 years?

Question 56

EasyOriginal question

A factory buys a machine for ₹6,00,000. It is expected to last 8 years and then fetch ₹40,000 as scrap. The factory uses the straight-line method.

What is the machine's book value after 3 years?

Options for question 56

Show the answer and explanation
CorrectNot quiteAnswer C

Correct answer: C

Explanation

  1. Three years of depreciation: 3×70,000=2,10,0003 \times 70{,}000 = 2{,}10{,}000.

  2. 6,00,000−2,10,000=3,90,0006{,}00{,}000 - 2{,}10{,}000 = 3{,}90{,}000 rupees.

Worth noting

₹2,10,000 is the depreciation so far, not the value left.

Concept
Book value
Typical time
90 s
Your time
—
The rule this testsLinear depreciation
Practise this chapter →

Ten questions from EMI, CAGR & Depreciation, at your own pace.

Practise this chapter →

Ten questions from EMI, CAGR & Depreciation, at your own pace.