Depreciation

To calculate the annual depreciation for the MRI machine, we can use the straight-line depreciation method. This method evenly depreciates the asset over its useful life.

Step-by-step Process:

1. Determine the initial cost of the asset, which is Rs 27 lakhs.
2. Identify the useful life of the asset, which is 12 years.
3. Apply the straight-line depreciation formula:

Annual Depreciation = (Initial Cost - Salvage Value) / Useful Life

1. Assume the salvage value is Rs 0 (unless specified otherwise).
2. Calculate the annual depreciation:
   • Annual Depreciation =
   • Annual Depreciation = Rs

Thus, the value of the annual depreciation of the MRI machine is Rs lakhs, which corresponds to the option (B).