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
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 .
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