Multiple choice

The value of a machine is Rs. 1,02,400 on April 1, 2012. It was purchased on April 1, 2009 and since then it is being depreciated @ 20% p.a. on diminshing balance method. Calculate the original cost of asset.

  1. Rs. 2,00,000

  2. Rs. 163840

  3. Rs. 1,70,667

  4. Rs. 1,60,000

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Original cost of machine is 102400 * 100/80 * 100/80 * 100/80 = Rs. 2,00,000