Saved Bookmarks
| 1. |
A firm purchased a plant for Rs. 40,000. Erection charges amounted to Rs. 2,000. Effective life of the plant is 5 years. Calculate the amount of depreciation per year under straight line method? |
|
Answer» Calculation of amount of depreciation = (Original Cost of the asset - Estimated Scrap value) / (Estimated useful life of the asset in year) Original Cost = Cost of plant + Erection charge = 40,000 + 2,000 = 42,000/5 years = Rs. 8,400. |
|