Question

Cost of the asset is Rs 5,00,000. Residual Value is Rs. 1,00,000. If the useful life of asset is 10 years, What will be the amount of depreciation under SLM?

• A. Rs. 40,000
• B. Rs. 50,000
• C. Rs. 60,000
• D. Rs. 10,000

Answer 1

The correct option is A

Rs. 40,000

Depreciation
= Rs. (5,00,000 - 1,00,000)/10
= Rs. 40,000