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NPV (july 2021 exam)
Financial Management
How did they calculated the depreciation over here?
Answers (8)
Best Answer
Surya Prakash
They told we should do analysis whether replacement is worth or not Given New machine=10lakhs (-) sale of old machine =(3 lakhs) Total cost = 7 lakhs Therefore Depreciation for 1st year 7lKhs *20%=140000 For 2nd = (7-1.4=5.6) 5.6 lakhs * 20%=112000 And so on we get req answer
It is clearly said that written down value method is followed. In WDV why should we reduce the scarp value.. Have never seen anywhere like that
They told we should do analysis whether replacement is worth or not Given New machine=10lakhs (-) sale of old machine =(3 lakhs) Total cost = 7 lakhs Therefore Depreciation for 1st year 7lKhs *20%=140000 For 2nd = (7-1.4=5.6) 5.6 lakhs * 20%=112000 And so on we get req answer
Rocky Girl .:.
Can anybody answer this question please
this question is part of videos ; video 128 last video of FM investment decisions chapter
Sriram Somayajula Admin
this question is part of videos ; video 128 last video of FM investment decisions chapter
But I don't have any subscription sir
Rocky Girl .:.
Can anybody answer this question please
Since asset is a part of block, WDV of old machine that is left after removing the sale value is carried forward and depreciated. So value of asset for depreciation will be 10.84 lacs (10.00+.84). WDV of existing machinery is 3.84 lacs. So incremental depreciation is calculated on 7,00,000(10.84-3.84).
vishwam mandepudi
Since asset is a part of block, WDV of old machine that is left after removing the sale value is carried forward and depreciated. So value of asset for depreciation will be 10.84 lacs (10.00+.84). WDV of existing machinery is 3.84 lacs. So incremental depreciation is calculated on 7,00,000(10.84-3.84).
Pls check this video on YT https://youtu.be/9mO1sD2T_lk
Sriram Somayajula Admin
Pls check this video on YT https://youtu.be/9mO1sD2T_lk
Ohw... Thank you soooo much sir.. Thank you so much. .â?¿.
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