Question

Original cost =Rs. $1,26,000$; Salvage value was Nil; Useful life was $6$ years. Depreciation for the fourth year under sum-of-years digits method will be _______________.

• A. Rs. $6,000$
• B. Rs. $12,000$
• C. Rs. $18,000$
• D. Rs. $24,000$

Answer 1

Answer: (C)

Rs. $18,000$

Option C is correct.
Sum of years = 1+2+3+4+5+6 = 21
Original Cost = 1,26,000

Depreciation = 1,26,000*3/21
= 18,000.