Present value of the machine = Rs 1,67,000
Rate of depreciation = 10 % Per annum
Time (n) = 2 years
For 1 year depreciation amount = \(\frac{162000\times1\times10}{100}\)
= Rs 16,200
Worth of the machine after one year = Worth of Machine – Depreciation
= 1,67,000 – 16,200
= 1,45,800
Depreciation of the machine for 2nd year = 145800 x 1 x \(\frac{10}{100}\)
= 14580
Worth of the machine after 2 years = 1,45,800 – 14,580
= 1,31,220
∴ Worth of the machine after 2 years = Rs 1,31,220