Question

Original cost= Rs 137000, Salvage value= Rs 17000, Dep rate is 10% WDV Method. Asset sold for Rs 100000 at the end of 3rd year. Gain/Loss is…………………

• A. Rs 12520 profit
• B. Rs 11520 loss
• C. Rs 18000 profit
• D. Rs 13200 loss

Answer 1

The correct option is A

Rs 12520 profit

Year	Value	Depreciation	WDV
1	120000	12000	108000
2	108000	10800	97200
3	97200	9720	87480

Gain= 100000- 87840= 12520