My answer is coming B. $2,59,200. However its showing incorrect. Can anyone confirm the same ? Thanks !
Share
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
At the end of year 2, the asset value is 648000.
When we calculate the Depreciation as per DDB for the 3rd Year, it will come to 259200. But charging this dep will bring the asset value to 388800 which is below its salvage value. We cannot charge 259200 as depreciation. Instead we will charge depreciation of 148000 (648000-500000).
Hope it helps.
Oh Right I made silly mistake… Thanks alot !!