A vehicle has a scrap value of ₹7,50,000 after 6 years of its purchase. If the annual depreciation charge is ₹55,000, then the original cost of the vehicle is :

₹10,80,000

The correct answer is Option (3) → ₹10,80,000

Scrap value after 6 years = 7,50,000

Annual depreciation charges = 55,000

Total years = 6 years

Total depreciation = 6 × 55,000

= 3,30,000

∴ Original cost = 7,50,000 + 3,30,000

= 10,80,000