A T.V. panel costing Rs 18000 has a useful life of 12 years. If the annual depreciation is Rs 1000, then its scrap value by linear method is:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Rs. 6000
Given:
Cost of TV panel: ₹18,000
Useful life: 12 years
Annual depreciation: ₹1,000
Linear depreciation formula: $C - (\text{Depreciation} \times \text{years}) = \text{Scrap value}$
Substitute values: $18,000 - (1,000 \cdot 12) = 18,000 - 12,000 = 6,000$