Madhu Ltd. owns machinery (rate of depreciation is 15%) the written down value of which as on 1st April, 2019 ₹ 30,00,000. Due to fire, entire assets in the block were destroyed and the insurer paid X 25,00,000. The eligible depreciation in respect of this machinery is –
A. ₹ 4,50,000
B. ₹75,000
C. ₹ 5,00,000
D. Nil
Answer:D
Madhu Ltd. owns machinery (rate of depreciation is 15%) the written down value of which as on 1st April, 2019 ₹ 30,00,000. Due to fire, entire assets in the block were destroyed and the insurer paid X 25,00,000. The eligible depreciation in respect of this machinery is –
A. ₹ 4,50,000 B. ₹75,000 C. ₹ 5,00,000 D. Nil