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Question

Mathematics Question on Basics of Accounting

A car costing ₹8,00,000 has scrap value of ₹3,00,000. If the book value of car at the end of fourth year is ₹6,00,000, then the useful life of the car is:

A

6 years

B

12 years

C

10 years

D

8 years

Answer

10 years

Explanation

Solution

The correct option is (C):10 years