Hello,

The question here is very simple. The price of machinery is not given but depreciation is give 2500. Depreciation is the reduction in the value of asset over time due to wear and tear. Hence, depreciation is reduced from the asset.

Let machinery be x

x - 2500(which is 5% depreciation) =47500

x= 47500+2500

x= 50,000

Hence, the value of machinery is 50,000.

I hope this helps,

All the best.