If $C$ is the original value of the asset, $S$ is the scrap value, $n$ is the useful life of the asset and $D$ is the annual depreciation, then
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → $D=\frac{C-S}{n}$
Using the linear (straight-line) depreciation method:
Annual depreciation: $D = \frac{C - S}{n}$
Where:
- $C$ = original cost of the asset
- $S$ = scrap value of the asset at the end of useful life
- $n$ = useful life in years
- $D$ = annual depreciation