Skip to main contentSkip to solution

An asset costing ₹ 1,50,000 is expected to have useful life of 5 years and scrap value of ₹ 30,000. Using linear depreciation method which of the following are TRUE?

A. Annual depreciation is ₹ 24,000

B. Depreciation rate is 20% per annum

C. Depreciation rate is 24% per annum

D. Annual depreciation is ₹ 22,000

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 1

Annual depreciation =150000−300005=₹ 24000=\dfrac{150000-30000}{5}=₹\,24000, so A is true.

Under straight line depreciation the rate is 15=20%\dfrac{1}{5}=20\% of the depreciable amount per year, so B is true.

Hence A and B only.

Keyboard Shortcuts

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