A machine is purchased for ᐹ9,00,000. Its estimated scrap value after 5 years is ᐹ1,50,000.
The annual depreciation under Straight Line Method is:
D=900000ᖒ1500005D=\frac{900000-150000}{5}
Questions
- Calculate annual depreciation.
- Prepare a depreciation schedule for 5 years.
- Determine the book value at the end of each year.
- Explain the advantages of the straight-line method.