PRC-1 · Chapter 10 · Question 69 of 100
A machine costs Rs. 270 million and has accumulated depreciation of Rs. 150 million. If depreciation is charged at 15% on the reducing balance, what is the depreciation expense for the year?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Rs. 18.0 million
Explanation
Reducing balance depreciation is calculated on the Net Book Value. NBV = 270m - 150m = 120m. Depreciation = 120m * 15% = Rs. 18.0 million.
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