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:
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.
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