Cost for an excavator is Rs. 20,00,000 / – and estimated life is 8 years. At the end of 8 years it has no salvage value. Book value of excavation at the end of 3 years using the normal double fall balance method
A. Rs. 8,43,750 / –
B. Rs. 8,75,000 / –
C. Rs. 10,50,000 / –
D. Rs. 11,56,250 / –
Answer:A
Cost for an excavator is Rs. 20,00,000 / – and estimated life is 8 years. At the end of 8 years it has no salvage value. Book value of excavation at the end of 3 years using the normal double fall balance method
A. Rs. 8,43,750 / – B. Rs. 8,75,000 / – C. Rs. 10,50,000 / – D. Rs. 11,56,250 / –