The annual depreciation of a car is ₹40,000. If the scrap value of the car after 15 years is ₹50,000, then the original cost of the car using linear method is

₹6,50,000

The correct answer is Option (4) → ₹6,50,000

Given:

Annual depreciation: ₹40,000

Scrap value after 15 years: ₹50,000

Let original cost = $C$

Linear depreciation formula: $C - (\text{Depreciation} \times \text{years}) = \text{Scrap value}$

Substitute values: $C - (40,000 \times 15) = 50,000$

$C - 600,000 = 50,000 \Rightarrow C = 650,000$