Question

1. If the cost of the asset is Rs. 20,000 scrap value is Rs. 5000; life is 5 years, the amount
depreciation per year will be?
A) Rs. 3000
B) Rs. 5000
C) Rs. 4000
D) Rs. 15000​

Answer 1

Answer:

I hope the right answer is

4000

Answer 2

Answer:

A) Rs. 3,000

The amount Depreciation per year will be Rs. 3,000

Explanation:

Given :

The cost of the asset = Rs. 20,000

Scrap value = Rs. 5000

Estimated useful life of Asset in years = 5

To find :

The amount Depreciation per year

Solution :

★  Annual Depreciation :

Annual Depreciation = Total cost of asset - scrap value / Estimated useful life of asset

• Annual Depreciation :

⇒ $\frac{ (Total Cost Of Asset - Scrap Value)}{Estimated \: Useful \: Life \: Of \: Asset}$

⇒ $\frac{20,000 - 5,000}{5}$

⇒ $\frac{15,000}{5}$

⇒ $\frac{15,000}{5} = 3,000$

⇒ 3,000

Annual Depreciation = Rs. 3,000

Therefore,

A) Rs. 3,000

The amount Depreciation per year will be Rs. 3,000

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