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Question - Bute plc has acquired a new item of plant and machinery costing £1,000,000. The estimated residual value for this machine is £100,000 and the useful life is 10 years. If the straight line method is used to calculate depreciation what is the net book value after 2 years?
a. £910,000
b. £900,000
c. £820,000
d. £800,000
e. None of the above
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