An equipment is purchased for Rs. 40, 000.00 and is fully depreciated by straight line method over 8 years. Considering interest on average annual cost at 15% p.a., the charge on the Company due to use of this equipment, if made uniformly over the 8 years, is

An equipment is purchased for Rs. 40, 000.00 and is fully depreciated

1.	An equipment is purchased for Rs. 40, 000.00 and is fully depreciated by straight line method over 8 years. Considering interest on average annual cost at 15% p.a., the charge on the Company due to use of this equipment, if made uniformly over the 8 years, is
A.	Rs. 5, 750
B.	Rs. 8, 000
C.	Rs. 8, 375
D.	Rs. 14, 000
Answer» D. Rs. 14, 000

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An equipment is purchased for Rs. 40, 000.00 and is fully depreciated by straight line method over 8 years. Considering interest on average annual cost at 15% p.a., the charge on the Company due to use of this equipment, if made uniformly over the 8 years, is

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