A main frame computer whose cost is ₹5,00,000 will depreciate to a scrap value of ₹50,000 in 5 years. Using the linear depreciation, the book value of the computer at the end of 3 years will be :

₹2,30,000

$\text{Original cost}=500000.$

$\text{Scrap value}=50000.$

$\text{Life}=5\text{ years}.$

$\text{Total depreciation}=500000-50000=450000.$

$\text{Annual depreciation}=\frac{450000}{5}=90000.$

$\text{Depreciation in 3 years}=3\times90000=270000.$

$\text{Book value after 3 years}=500000-270000=230000.$

$\text{Book value}=₹2,30,000.$