A reactor having a salvage value of Rs. 10000 is estimated to have a service lif

Question

A reactor having a salvage value of Rs. 10000 is estimated to have a service life of 10 years. The annual interest rate is 10%. The original cost of the reactor was Rs. 80000. The book value of the reactor after 5 years using sinking fund depreciation method will be Rs.

Options:

A . 40096

B . 43196

C . 53196

D . 60196

Answer: Option D

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