1.

if the opening written down value of a machine is 500000 find the value of depreciation at 10% for the current year​

Answer»

Explanation:

It is given that

PRESENT value = 500000

REDUCED value = 364500

Rate of depreciation = 10% p.a.

Consider N YEARS as the period

We know that

A/P = (1−r/100)

n

Substituting the VALUES

364500/500000=(1−10/100)

n

By further calculation

(9/10)

n

=729/1000=(9/10)

3

So we get

n=3

Therefore, the period in which its value be reduced to 364500 is 3 years.



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