A company purchased a vehicle for Rs 6000. It will be used for 5 years and its residual value is expected to be Rs 1000. What is the annual amount of deprecation using straight line method of depreciation?

Rs 1000

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Rs 2000

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Rs 3000

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Rs 3300

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Solution

The correct option is A
Rs 1000

Depreciation= Rs 6000 - Rs 1000 = Rs 5000/5 = Rs 1000.

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A company purchased a vehicle for Rs 6000. It will be used for 5 years and its residual value is expected to be Rs 1000. What is the annual amount of deprecation using straight line method of depreciation?

The correct option is A Rs 1000 Depreciation= Rs 6000 - Rs 1000 = Rs 5000/5 = Rs 1000.

The correct option is A
Rs 1000

Depreciation= Rs 6000 - Rs 1000 = Rs 5000/5 = Rs 1000.