I need answer Question:Mr. R bought a machine for Rs 25,000 on which he spent Rs 5,000for carriage and freight; Rs 1,000 for brokerage of the middleman;Rs 3,500 for installation and Rs 500 for an iron pad. The machineis depreciated @ 10% every year on a written down basis. Afterthree years the machine was sold to Mr. B for Rs 30,500 and Rs500 was paid as commission to the broker. Find out the profit orloss on the sale of the machine.

Explanation of Written Down Value Method: Written down value method (WDV) is a depreciation…

Answered: Question: Mr. R bought a machine for Rs…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 58P

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Alpha Castings Private Limited,a small scale industry purchases a generator for Rs. 20,000. The operation cost is Rs 2000 during the first year of its operation and it is increases by Rs 1000 every year thereafter. The maintenance cost is Rs. 200 during the first year of its operation and it is increased by Rs. 100 every year thereafter . The purchase of this generator is through an interest free loan sanctioned for this company by Small Scale industry Development Corporation. Find the economic life of the generator.
On 11/01/20X1, TK purchases a new truck at a price of EUR 205,000 plus VAT on Ziel. The transfer of the truck incurs costs of EUR 5,950 including VAT, which must be paid in cash. The insurance for the truck is EUR 480 per year and will be transferred from the company bank account on 01.11.20X1 for one year in advance. The usual useful life is 7 years. The total performance of the truck is estimated at 250,000 km. Which of the following statements regarding business transactions in 20X1 is/are correct? O With use-based depreciation and a use of 11,000 km in the year 20X1, the residual book value on 12/31/20X1 is EUR 194,600. O With straight-line depreciation, the residual book value on 12/31/20X1 is EUR 205,000. O With arithmetic degressive depreciation, the residual book value on December 31, 2020X1 is EUR 201,250. O With geometric degressive depreciation and a geometric depreciation rate of 25%, the residual book value on December 31, 2020X1 is EUR 205,000.
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