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A company has purchased a machinery for Rs. 1,80,000 and spent Rs. 10,000 for its installation. The estimated life of the machinery is 5 years with a residual value of Rs. 15,000. Find out the amount of depreciation to be provided every year?

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Amount of depreciation = (Original Cost - Scrap Value) / (Estimated useful life)

\(\frac{1,90,00-15,000}{5}\)

\(\frac{1,75,00}{5}\)

= Rs. 35,000 per year

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