If the life expectancy of an asset is 10 years, scrap value ₹5,000 and annual depreciation of ₹3000 per annum, then original cost of the asset is :
Answer & explanation
Correct answer: option 3
Life of asset $=10$ years
Annual depreciation $=3000$
Total depreciation in $10$ years
$=3000\times10=30000$
Let original cost $=C$
Scrap value $=5000$
$C-5000=30000$
$C=35000$
The original cost of the asset is ₹35,000.