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:
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 , so A is true.
Under straight line depreciation the rate is of the depreciable amount per year, so B is true.
Hence A and B only.
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