X ltd purchased a machine for Rs.2,20,000 on 1st Jan 2001 & incurred Rs.40,000 towards freight . Insurance , carriage inwards & installation charges .It was estimated that the machinery will have a scrap value of Rs.20,000 at the end of its useful life which is 10 years of 12,000 hrs each .X ltd decided to depreciate the machine on 'machine hour rate method' .The machine hours during first six years were year -2001 machine hours 6,000 ; year -2002 machine hours 8,000 year -2003 machine hours 10,000 year -2004 machine hours 14,000 year -2005 machine hours 14,000 year -2006 machine hours 12,000.The depreciation for the year 2006 will be
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