The original cost of the asset is Rs. 2,50,000. The useful life of the asset is 10 years and net residual value is estimated to be Rs. 50,000. Now, the amount of depreciation to be charged every year will be _________.

Rs.21000

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Rs.20000

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Rs.25000

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Rs.19000

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Solution

The correct option is B Rs.20000
Formula for calculating depreciation is :
Depreciation = (Cost of asset - Scrap value)/ Useful life of asset
Depreciation = Rs. (250000 - 50000)/ 10 years
Depreciation = Rs. 20000

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The original cost of the asset is Rs. 2,50,000. The useful life of the asset is 10 years and net residual value is estimated to be Rs. 50,000. Now, the amount of depreciation to be charged every year will be _________.

The correct option is B Rs.20000Formula for calculating depreciation is :Depreciation = (Cost of asset - Scrap value)/ Useful life of assetDepreciation = Rs. (250000 - 50000)/ 10 yearsDepreciation = Rs. 20000

The correct option is B Rs.20000
Formula for calculating depreciation is :
Depreciation = (Cost of asset - Scrap value)/ Useful life of asset
Depreciation = Rs. (250000 - 50000)/ 10 years
Depreciation = Rs. 20000