Question

From the following details calculate annual depreciation on the coal mine.
Coal mine purchased Rs. 10,50,000, Additional expenses incurred on development of coal mine Rs. 200000. Total coal expected from the coal mine 100000 mt. Expected value of coal mine after exhausting coal resources Rs. 50,000. Coal production during 2006-07 5000 mt.

• A. Rs. 60,000
• B. Rs. 100000
• C. Rs. 120000
• D. Rs. 100000

Answer 1

The correct option is A Rs. 60,000

60,000