00:01
So hi in this question.
00:02
A company recently purchased a machinery, a machinery which cost around, which cost 50 ,000 currency units, all right? and it is given that its estimated salvage value, you can say residual value is 500 cell wage value, all right, let me add it properly, cell wage value is 5 ,000 units, currency units.
00:34
And it is expected that life of that machinery is expected light of, life of that machinery is five years, all right.
00:45
So we need to find out the depreciated value.
00:48
We need to find out the book value of the machinery at the end of first year.
00:53
Like after all that depreciation in the single year, we need to find out the book value.
00:58
At the end of the first year.
01:01
All right, if and it is given that company is using straight line method for calculating annual depreciation straight line method.
01:10
Probably using straight line method.
01:12
So after one year we need to find out the book value of the machine.
01:17
If we have given some option, we have to choose the correct term.
01:21
We have here we have a first option is 40 ,000, 40 ,000...