A vehicle has a scrap value of ₹6,50,000 after 10 years of its purchase. If the annual depreciation charge is ₹35,000, then the original cost of the vehicle is : |
₹10,00,000 ₹11,50,000 ₹13,50,000 ₹12,00,000 |
₹12,00,000 |
The correct answer is Option (4) → ₹12,00,000 The original cost of the vehicle, Original cost = Scrap value + (Annual Depreciation × Years) $= ₹6,50,000 + (₹35,000 × 10)$ $=₹12,00,000$ |