Question
a) A company has recently purchased an overhead travelling crane for Rs. 25,00,000. Its expected life is seven years and the salvage value at the
a) A company has recently purchased an overhead travelling crane for Rs. 25,00,000. Its expected life is seven years and the salvage value at the end of the life of the overhead travelling crane is Rs. 1,00,000. Using the straight line method of depreciation, find the depreciation and the book value at the end of third and fourth year after the crane is purchased.
b) Considering same data find the following using the sum-of-the-years digits method of depreciation:
(a) Depreciation at the end of the fourth year
(b) Depreciation at the end of the seventh year
(c) Book value at the end of the fifth year
(d) Book value at the end of the eighth year
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