PRC-1 · Chapter 6 · Question 44 of 100
A vehicle cost Rs. 600,000 and is depreciated at 25% reducing balance. What is the depreciation charge in Year 3?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Rs. 84,375
Explanation
Y1: 600k * 25% = 150k (WDV = 450k). Y2: 450k * 25% = 112.5k (WDV = 337.5k). Y3: 337.5k * 25% = Rs. 84,375.
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