Question

If original cost is 1,36,000 salvage
value is 10,000 and useful life is 6
years. Depreciation will be
under straight line method.​

Answer 1

Answer:

The amount of depreciation will be 21,000

Explanation:

Given :

• The original cost on the Asset = 1,36,000

• Salvage Value = 10,000

• Estimated useful life of Asset (in years) = 6 Years

To find :

• Amount of depreciation

Solution :

★  Annual Depreciation :

Annual Depreciation = (Total cost of Asset - Salvage Value) / Estimated useful life of asset

• Annual Depreciation :

$\sf{\dfrac{(Total\:cost\:of\:Asset \: - \: Salvage \: Value)}{Estimated \: useful \: life \: of \: asset}}$

⇒ $\sf{\dfrac{1,36,000 - 10,000}{6}}$

⇒ 1,36,000 - 10,000

⇒ 1,26,000

⇒ $\sf{\dfrac{1,26,000}{6}} = \: 21,000$

Annual Depreciation = 21,000

Therefore,

The amount of depreciation will be 21,000