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Commerce · Q854

Accounting

Graduate and Post Graduate · Commerce · question 854

Q854

A machine was purchased for Rs. 10,000 and its life was estimated to be 3 years, and at the end of its life, its book value was Rs. 5,120. If depreciation is calculated according to Diminishing Balance method, the rate of depreciation would be:

A.
25%
B.
15%
C.
20%
Answer
D.
10%

Answer: Option C

Solution

Answer: Option C
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