A plant whose original cost was Rs 40,000, accumulated depreciation provided till the date of sale was Rs 15,000 was sold at 20% above the book value. Cash flow will be
Answer & explanation
Correct answer: option 2
Book Value = 40,000 - 15,000
= 25000
Sale value = 25,000 + 20% of 25,000
= Rs 30,000