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Question

The vehicle costs Rs. 1,50,000; it charges 20% depreciation according to written down value method. Estimate the value of the vehicle after depreciation at the end of three years.


A

Rs. 68,000

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B

Rs. 56,000

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C

Rs. 78,000

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D

Rs. 76,800

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Solution

The correct option is D

Rs. 76,800


Year Value Depreciation at 20% WDV
1 1,50,000 30,000 1,20,000
2 1,20,000 24,000 96,000
3 96,000 19,200 76,800

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