The annual depreciation of a car is Rs 30,000. If the scrap value of the car after 15 years is Rs 50,000 then the original cost (in Rs.) of the car is :
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 5,00,000
The Depreciation formula for straight line depreciation is,
Original Cost = Scrap Value + (Annual Depreciation × Time)
$=50,000+(30,000×15)$
$=5,00,000$