Question

Original cost of an asset was Rs. $2,52,000$. Salvage value was $12,000$. Depreciation for 2nd year @$10$% p.a under WDV method will be

• A. $21,600$
• B. $22,680$
• C. $30,000$
• D. $28,000$

Answer 1

Answer: (B)

$22,680$

Calculation of depreciation under WDV method :

Original cost of asset 252000

Less : Depreciation for first year @ 10% (25200) WDV of asset in second year 226800

Less : Depreciation for second year @ 10% (22680)

WDV of asset in third year 204120

Thereore depreciation of asset at the of second year of cost Rs. 252000 @ 10% is Rs. 22680.