Annual depreciation of machine is 40000, cost of machine is 500000, rate of depr

Question

Annual depreciation of machine is 40000, cost of machine is 500000, rate of depreciation according to straight-line method will be-

Options:

A . 9%

B . 18%

C . 16%

D . 8%

Answer: Option D
:
D
Depreciation Rate= Rs 40,000/Rs 5,00,000= 0.08 = 8%

Was this answer helpful ?

Next Question

More Questions on This Topic :

Question 1. A piece of machinery worth 1,00,000 is charged depreciation (Straight line method) at 10%. In the journal entry for tran....depreciaton to income statement, which account shall be credited ?

Question 2. A machine with a cost of Rs 100000 & accumulated depreciation of Rs 80,000 & was sold at a loss of Rs 6000. Bank....of Rs 6000. Bank account shall have been debited by ___

Question 3. In which method, the depreciation is constant and in which method, the depreciation is higher in initial years when comp....is higher in initial years when compared to later years?

Question 4. If an accumulated depreciation account is in use, then the entries for the year’s depreciation would be:....

Question 5. The annual depreciation charged under _______ method remains fixed during the life of asset, while it diminishes every y....of asset, while it diminishes every year in ______ method

Question 6. The cost of the asset is 60,000 and depreciated at 12% p.a. using the written down method. at the end of three years, it....years, it will have a net book value of ______

Question 7. Cost of the fixed asset – Salvage value = ....

Question 8. A car was purchased for Rs55000. Its residual value was estimated to be Rs5000 with useful life of 5 years. What will be....life of 5 years. What will be the depreciation expense?

Question 9. The Diminishing balance method means a method by which-....

Question 10. If the estimated useful life of an asset is 10 years, the straight line depreciation rate would be:....

Chapter 1 - GLOBAL STEEL SCENARIO & INDIAN STEEL INDUSTRY Part 1 : (13-04-2024) INDUSTRY AND COMPANY AWARENESS (ICA)

Direction Sense Test Part 1 Reasoning (Hindi)

Chapter 1 - RMHP / OHP / OB & BP Part 1 : (14-02-2024) GPOE

Cube & Cuboid Part 1 Reasoning (Hindi)

Data Interpretation (DI) Basic Concept Reasoning (Hindi)

Counting Figures Part 1 Counting Of Straight Lines Reasoning (Hindi)

Sail E0 free webinar Webinars

Real Numbers Part 7 Class 10 Maths

Real Numbers Part 1 Class 10 Maths

Polynomials Part 1 Class 10 Maths

DSP Combined 1 Free Revision Test SAIL JO E-0

GPOE / GPA Combined 1 Free Revision Test SAIL JO E-0

BSP Plant Specific Review Test SAIL JO E-0

BSL Combined 1 Free Revision Test SAIL JO E-0

GFM Combined 1 Free Revision Test SAIL JO E-0