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Section C (4 Mark)Read the senario and answer to the question.

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Section C (4 Mark)

Read the senario and answer to the question.

Mr. Mehta buys machinery for Rs. 80000 which is to be replaced after a period of two years. The replacement cost at that time will be Rs. 90000. As a Chartered Wealth Manager advice Mr. Mehta now what he should do after two year for the replacement of the said machinery?

A.

He should buy the new machinery first and sells the old machine in the next financial year

B.

He should sell new machinery first and buy the old machine in the next financial year

C.

He should buy and sell the machine in the same financial year

D.

He should buy and sell the machine in the financial year 2011

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Section C (4 Mark)Read the senario and answer to the question.
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