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Straight Line Method(SLM)

Annual deprec...

Question

Annual depreciation of machine is Rs. 40,000, cost of machine is Rs. 5,00,000, rate of depreciation according to straight-line method will be-

A

9%

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B

18%

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C

16%

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D

8%

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Solution

The correct option is D
8%

Depreciation Rate
= (Rs. 40,000 /Rs. 5,00,000) x 100
= 8%

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