Of the two machines purchased, the first one’s share of cost is 37.5%. Depreciation is to be calculated annually at the rates of 20% and 15% on the first and second machines respectively, of the value of each machine at the beginning of the year. At the end of two years, the total value of depreciation is what percent of the total cost?
Let the cost of two machines be Rs. 800
So, cost of 1st machine = 37.5% of Rs. 800 = Rs. 300
Cost of 2nd machine = 62.5% of Rs. 800 = Rs. 500
Total cost of 2 Machines at the end of 2 yrs = 553.25
Total depreciation =246.75=(246.75800)×100=30.84%
Hence option (c)