ABC Company provides the following information:

Cost of the equipment: Rs. 5,000
Salvage value: Rs. 500
Useful life of equipment: 10 years
Under straight line method, the yearly depreciation charge is:

Rs. 500

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Rs. 550

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Rs. 50

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Rs. 450

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Solution

The correct option is D
Rs. 450

Cost of asset 5000

Less:Residual value 500

Depreciable Amount 4500

Depreciation 450 (4500/10)

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Cost of asset	5000
Less:Residual value	500
Depreciable Amount	4500
Depreciation	450	(4500/10)

ABC Company provides the following information: Cost of the equipment: Rs. 5,000 Salvage value: Rs. 500 Useful life of equipment: 10 years Under straight line method, the yearly depreciation charge is:

The correct option is D Rs. 450 Cost of asset 5000 Less:Residual value 500 Depreciable Amount 4500 Depreciation 450 (4500/10)

ABC Company provides the following information:

Cost of the equipment: Rs. 5,000
Salvage value: Rs. 500
Useful life of equipment: 10 years
Under straight line method, the yearly depreciation charge is:

The correct option is D
Rs. 450

Cost of asset 5000

Less:Residual value 500

Depreciable Amount 4500

Depreciation 450 (4500/10)