Question: Do correctly. In the year 2016-17, an entity has acquired a new freehold building with a useful life of 50 years for Rs. 90,00,000. The

Do correctly. Do correctly. In the year 2016-17, an entity has acquired a new

In the year 2016-17, an entity has acquired a new freehold building with a useful life of 50 years for Rs. 90,00,000. The entity desires to calculate the depreciation charge per annum using straight-line method. It has identified the following components (withnoresidualvalue oflifts&fixturesattheendoftheirusefullife)asfollows: a Compone Useful life Cost nt (Years) Land Infinite Rs. 20,00,000 Roof 25 Rs. 10,00,000 Lifts 20 Rs. 5,00,000 Fixtures 10 Rs. 5,00,000 Remainder of building 50 Rs. 50,00,000 Rs. 90,00,000 You are required to calculate depreciation for the year 2016-17 as per componentization method

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