A company bought a furniture for 2,40,000 and useful life is 10 years. The estimated scrap value is 40,000. In this under SLM method, Depreciation =

Rs.24,000

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Rs.40,000

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Rs.20,000

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Rs.10,000

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Solution

The correct option is C Rs.20,000
Depreciation
= $\frac{C o s t o f t h e a s s e t - S c r a p v a l u e}{L i f e o f t h e a s s e t}$

= $\frac{2, 40, 000 - 40, 000}{10}$
= Rs. 20,000

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A company bought a furniture for 2,40,000 and useful life is 10 years. The estimated scrap value is 40,000. In this under SLM method, Depreciation =

The correct option is C Rs.20,000Depreciation = Cost of the asset − Scrap valueLife of the asset = 2,40,000−40,00010 = Rs. 20,000

The correct option is C Rs.20,000
Depreciation
= $\frac{C o s t o f t h e a s s e t - S c r a p v a l u e}{L i f e o f t h e a s s e t}$

= $\frac{2, 40, 000 - 40, 000}{10}$
= Rs. 20,000