General Intelligence · General Aptitude
Zenith Aerospace Corporation acquired a specialized testing laboratory setup on April 1, 2022, for a total cost of 12,00,00,000 units. The company used the Written Down Value (WDV) method of depreciation at a rate of 15% per annum. On April 1, 2024, the remaining useful life of the lab was re-evaluated to be only 6 years. Simultaneously, a major upgrade costing 2,50,00,000 units was performed on July 1, 2024, to comply with new environmental standards. The company continues to use the 15% WDV rate on the revised carrying amount. During the internal audit, it was discovered that this upgrade was mistakenly recorded as a revenue expenditure (repair and maintenance) in the FY 2024-25 books. Furthermore, the salvage value was revised from zero to 50,00,000 units on the date of the upgrade. Considering the correction of this accounting error and change in estimates, what would be the corrected depreciation charge for the financial year ending March 31, 2025, and the adjusted carrying/book value as of March 31, 2025?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 11,48,87,500 units and 10,13,62,500 units
- 21,51,12,500 units and 9,66,37,500 units
- 31,58,17,500 units and 9,58,82,500 units✓
- 41,45,20,000 units and 10,25,00,000 units
Correct answer
1,58,17,500 units and 9,58,82,500 units
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