Question

What would be the depreciation cost of a tractor purchased by the farmer having 25 KW power at a total cost of Rs 300000/-?

(a) Rs 25

(b) Rs 24

(c) Rs 27

(d) Rs 29

The question was posed to me in exam.

My doubt is from Numericals on Mouldboard Plough in section Tillage, Disc Plough & Numericals of Farm Machinery

Answer 1

The correct option is (c) Rs 27

The best I can explain: Depreciation = \(\frac{C-S}{L*H}=\frac{[300000-(\frac{300000}{10})]}{10*1000} = \frac{270000}{10000}\) = Rs 27.