Price of the computer = Rs 50,000
Residual value = Rs 10,000
Hours worked for the year = 6000 hrs
Estimated life of computer = 20,000 hrs
Calculate the amount of depreciation.

Rs. 15,000

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Rs. 12,000

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Rs. 20,000

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Rs. 24,000

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Solution

The correct option is B Rs. 12,000
Depreciation = Cost of the asset - salvage value
---------------------------------------------------- x no. of hours worked
total estimated hours
= 50,000 - 10,000
-------------------------- x 6,000
20,000
= RS-12,000.

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Price of the computer = Rs 50,000Residual value = Rs 10,000Hours worked for the year = 6000 hrsEstimated life of computer = 20,000 hrsCalculate the amount of depreciation.

The correct option is B Rs. 12,000Depreciation = Cost of the asset - salvage value ---------------------------------------------------- x no. of hours worked total estimated hours = 50,000 - 10,000 -------------------------- x 6,000 20,000 = RS-12,000.

Price of the computer = Rs 50,000
Residual value = Rs 10,000
Hours worked for the year = 6000 hrs
Estimated life of computer = 20,000 hrs
Calculate the amount of depreciation.

The correct option is B Rs. 12,000
Depreciation = Cost of the asset - salvage value
---------------------------------------------------- x no. of hours worked
total estimated hours
= 50,000 - 10,000
-------------------------- x 6,000
20,000
= RS-12,000.