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A machine costing ₹ 1,00,000 has a useful life of 5 years. The estimated scrap value is ₹ 20,000. Using linear method, the annual depreciation is

Solution

✅ Correct Option: 1

Linear (straight-line) depreciation spreads cost less scrap value evenly across the useful life.

Annual depreciation =100000−200005=16000= \frac{100000-20000}{5} = 16000.

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