An excavator costs Rs. 20,00,000 and has an estimated life of 8 years. It has no salvage value at the end of 8 years. The book value of the excavator at the end of 3 years using general double declining balance method is A. Rs. 8,43,750 B. Rs. 8,75,000 C. Rs. 10,50,000 D. Rs. 11,56,250

In this case, the straight-line depreciation rate is 1/8 = 0.125. The depreciation rate using the general double declining balance method is 0.125 * 2 = 0.25.

The book value of the excavator at the end of 3 years is calculated as follows:

Book value = Cost – Depreciation

Book value = 20,00,000 – (3 * 0.25 * 20,00,000) = 8,43,750

Option B is incorrect because it is the depreciation expense for the first year. Option C is incorrect because it is the book value of the excavator at the end of 4 years. Option D is incorrect because it is the book value of the excavator at the end of 5 years.