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 :
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → ₹12,00,000
The original cost of the vehicle,
Original cost = Scrap value + (Annual Depreciation × Years)
$= ₹6,50,000 + (₹35,000 × 10)$
$=₹12,00,000$