Question

original cost =1260000, Salvage value=nil,useful life =6 yrs, depreciation for the first year under sum of year digit method will be
a) 360000
b) 120000
c) 180000​

Answer 1

Sum of years = 6 + 5 + 4 + 3 + 2 + 1

= 21.

Depreciable amount = 1,26,000.

Depreciation = depreciable amount x no. of years remaining

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sum of years remaining

= 1,26,000 x 6

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21

= RS-36,000.

Answer 2

Answer:

Answer is 360000.

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