If the cost of a car is ₹10,00,000 and its scrap value after fifteen years is ₹1,00,000, then yearly depreciation using straight line method is :
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → ₹60,000
The straight line method of depreciation is,
Annual depreciation = $\frac{Cost\,of\,Asset-Scrap\,value}{Useful\,life}$
$=\frac{10,00,000-1,00,000}{15}$
$=60,000$