Skip to main contentSkip to solution

A T.V. panel costing Rs 18000 has a useful life of 12 years. If the annual depreciation is Rs 1000, then its scrap value by linear method is:

Solution

Correct Option: 2

A T.V. panel has an original cost of Rs 18,000 and a useful life of 12 years. The annual depreciation is Rs 1,000.

Using the linear depreciation method, the value decreases by the same amount each year.

Total Depreciation = Annual Depreciation × Number of Years

Total Depreciation = 1,000 × 12

Total Depreciation = Rs 12,000


Scrap Value = Original Cost − Total Depreciation

Scrap Value = 18,000 − 12,000

Scrap Value = Rs 6,000


Therefore, the scrap value of the T.V. panel after 12 years is Rs 6,000.

Keyboard Shortcuts

  • Left arrow: Previous question
  • Right arrow: Next question
  • S key: Jump to solution
  • Q key: Jump to question