Original cost = Rs. 1,36,000; Salvage value = 10,000, Useful life= 6 years. Depreciation for the fourth year under Sum of years' Digits method will be ______.
A
Rs. 6,000
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B
Rs. 12,000
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C
Rs. 18,000
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D
Rs. 24,000
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Solution
The correct option is C Rs. 18,000
Sum of years = 6 + 5 + 4 + 3 + 2 + 1
= 21
Depreciation = depreciable value x no. of year left