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Commerce · Q2529

Accounting

Graduate and Post Graduate · Commerce · question 2529

Q2529

If on 1st January 1983 a plant is purchased for Rs. 1,20,000, its estimated life is ten years and its salvage value is Rs. 10,000 under which one of the following method would the 1983 depreciation be the largest?

A.
Straight line method
B.
Double-declining balance method
C.
Sum of the year's digits method
Answer
D.
15% on original cost

Answer: Option C

Solution

Answer: Option C
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