Meri Shrushti LLP purchased a machinery for Rs 100000. The LLP spent Rs 50000 on transportation. The entity also carried out the installation of the machinery by paying 1% of the purchase price of the machinery. The estimated scrap value of the machinery at the end of the 10 years is Rs 10000.

Question a: Define the term depreciation, discuss any two factors affecting the computation of depreciation

Question b: Calculate the annual depreciation expenses and also share the formula for the same