Consider the following information: Rate of depreciation under the written down method is $20$ %; Original cost of the asset was Rs. $1, 00, 000$ ; Residual value of the asset at the end of useful life will be Rs. $32, 768$ ; The estimated useful life of the asset will be ________ .

4 years

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5 years

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6 years

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7 years

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Solution

The correct option is B 5 years
Option B is correct one.
100000-20% till 32768 it comes 5 times
it means if you deduct 20% from 100000 for 5 times we will get 32768.

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Consider the following information: Rate of depreciation under the written down method is 20%; Original cost of the asset was Rs. 1,00,000; Residual value of the asset at the end of useful life will be Rs. 32,768; The estimated useful life of the asset will be ________ .

The correct option is B 5 yearsOption B is correct one.100000-20% till 32768 it comes 5 timesit means if you deduct 20% from 100000 for 5 times we will get 32768.

Consider the following information: Rate of depreciation under the written down method is $20$ %; Original cost of the asset was Rs. $1, 00, 000$ ; Residual value of the asset at the end of useful life will be Rs. $32, 768$ ; The estimated useful life of the asset will be ________ .

The correct option is B 5 years
Option B is correct one.
100000-20% till 32768 it comes 5 times
it means if you deduct 20% from 100000 for 5 times we will get 32768.