If value of an asset is Rs 9,00,000, scrap value is Rs 1,25,000, estimated life is 10 years, then the cost of depreciation under straight-line method will be-

Rs 65,000

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Rs 89,000

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Rs 77,500

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Rs 78000

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Solution

The correct option is C
Rs 77,500

Depreciation = Rs 9,00,000 - Rs 1,25,000= Rs 7,75,000 / 10 = Rs 77,500

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If value of an asset is Rs 9,00,000, scrap value is Rs 1,25,000, estimated life is 10 years, then the cost of depreciation under straight-line method will be-

The correct option is C Rs 77,500 Depreciation = Rs 9,00,000 - Rs 1,25,000= Rs 7,75,000 / 10 = Rs 77,500

The correct option is C
Rs 77,500

Depreciation = Rs 9,00,000 - Rs 1,25,000= Rs 7,75,000 / 10 = Rs 77,500