A piece if equipment that costs Rs 25000 has an estimated useful life of 8 years and Rs 0 scrap value. Find the annual depreciation using linear method.

₹3125

The correct answer is option (4) : ₹3125

Original cost of equipment = ₹25000

Scrap value of equipment = ₹0

Useful life = 8 years

∴ Annual depreciation $=\frac{25000-0}{8}$

$= ₹ 3125$