A truck is bought by the company for Rs. 2,75,000. It is estimated that the salvage value will be Rs. 10,000 at the end of its useful life which is 5 years. Calculate the amount of depreciation to be charged every year under SLM method.

Rs. 30,480

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Rs. 53,000

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Rs. 1,60,000

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Rs. 45,000

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Solution

The correct option is B
Rs. 53,000

Particulars Amount

Cost of Asset 2,75,000

Less: Salvage Value 10,000

Depreciable Value 2,65,000

Depreciation 53,000 (2,65,000/5)

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Particulars	Amount
Cost of Asset	2,75,000
Less: Salvage Value	10,000
Depreciable Value	2,65,000
Depreciation	53,000	(2,65,000/5)

A truck is bought by the company for Rs. 2,75,000. It is estimated that the salvage value will be Rs. 10,000 at the end of its useful life which is 5 years. Calculate the amount of depreciation to be charged every year under SLM method.

The correct option is B Rs. 53,000 Particulars Amount Cost of Asset 2,75,000 Less: Salvage Value 10,000 Depreciable Value 2,65,000 Depreciation 53,000 (2,65,000/5)

The correct option is B
Rs. 53,000

Particulars Amount

Cost of Asset 2,75,000

Less: Salvage Value 10,000

Depreciable Value 2,65,000

Depreciation 53,000 (2,65,000/5)