M P Precision Limited bought equipment for 14.50 million. The company estimates that the useful life
Question:
M P Precision Limited bought equipment for ₹ 14.50 million. The company estimates that the useful life of the equipment is 10 years with a residual value of ₹ 2.5 million.
1. Prepare the depreciation schedule of the equipment using straight line method (SLM) of depreciation.
2. Assuming that the equipment is eligible for claiming depreciation at 40% per annum on written down value (WDV) basis. Calculate depreciation for tax accounting purposes.
3. What will be the impact of reported profit visàvis taxable income?
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1 Straight Line Method SLM of Depreciation Depreciation Expense CostResidual Value Useful Life Depre...View the full answer
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