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Cash Flow from Operating Activities-Indirect Method

Asset purchas...

Question

Asset purchase in 2020 at Rs.20000. Calculate the depreciation amount for 2years @10p.a. under written down value method ____________.

A

Rs. 3800

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B

Rs. 4000

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C

Rs. 3500

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D

Rs. 3850

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Solution

The correct option is A Rs. 3800
Under Written down value method Depreciation is calculated on the book value every year.

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