Question

A machine costing ₹ one lakh depreciates at constant rate 10%. Estimated useful life of machine is 8 years.
Match List I with List II

List I		List II
A.	Total depreciation in 2nd and 3rd year is	I.	₹81,000
B.	Value of machine after one year is	II.	₹17,100
C.	Value of machine after 2 year is	III.	₹43050
D.	Scrap value of machine is : given (1.1)3 - 2.144 & (0.9)3 - 0.4305	IV.	₹90,000

Choose the correct answer from the options given below :

• A. A-II, B-III, C-IV, D-I
• B. A-II, B-IV, C-III, D-I
• C. A-II, B-IV, C-I, D-III
• D. A-II, B-I, C-IV, D-III

Answer 1

The Correct Option is C

The given problem involves calculating the depreciation of a machine over time. We start with a machine costing ₹1,00,000 and depreciates by 10% annually.

1. Value after 1 year: The machine depreciates 10% the first year.
   Initial value = ₹1,00,000
   Depreciation = 0.1 × ₹1,00,000 = ₹10,000
   Value after 1 year = ₹1,00,000 - ₹10,000 = ₹90,000
2. Value after 2 years: Depreciate the value after 1 year by 10%.
   Depreciation = 0.1 × ₹90,000 = ₹9,000
   Value after 2 years = ₹90,000 - ₹9,000 = ₹81,000
3. Total depreciation in 2nd and 3rd year:
   Value after 3 years:
   Depreciation = 0.1 × ₹81,000 = ₹8,100
   Value after 3 years = ₹81,000 - ₹8,100 = ₹72,900
   Total depreciation in 2nd and 3rd year = ₹9,000 + ₹8,100 = ₹17,100
4. Scrap value of the machine: Using provided powers, \( (0.9)^3 = 0.4305 \).
   Scrap value = Initial value × \( (0.9)^8 \)
   But since we need only approximate using powers, we focus on the third-year value beset by powers given:
   After 8 years = ₹1,00,000 × \( 0.4305 = ₹43,050 \).

List I		List II
A.	Total depreciation in 2nd and 3rd year is	II.	₹17,100
B.	Value of machine after one year is	IV.	₹90,000
C.	Value of machine after 2 year is	I.	₹81,000
D.	Scrap value of machine is : given (1.1)3 - 2.144 & (0.9)3 - 0.4305	III.	₹43,050

The correct answer is: A-II, B-IV, C-I, D-III