Mr. Bean purchased a laptop for Rs. 75,000. The laptop is estimated to have a scrap value of Rs. 10,000 after a span of 8 years. The book value of the laptop at the end of 5 years is
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Rs. 34,375
No method is named, so the straight line method is used: the laptop loses the same amount every year.
\( \displaystyle \text{Annual depreciation}=\frac{\text{Cost}-\text{Scrap value}}{\text{Useful life}} \)
\( \displaystyle =\frac{75{,}000-10{,}000}{8} \)
\( \displaystyle =\frac{65{,}000}{8} \)
\( \displaystyle =8{,}125 \)
\( \displaystyle \text{Book value after 5 years}=75{,}000-5\times 8{,}125 \)
\( \displaystyle =75{,}000-40{,}625 \)
\( \displaystyle =34{,}375 \)
Why the other options are incorrect
Option (1) Rs. 65,000 — Incorrect. Rs. 65,000 is the total depreciation over 8 years (cost − scrap value), not a book value.
Option (2) Rs. 8,125 — Incorrect. Rs. 8,125 is the depreciation for one year.
Option (3) Rs. 42,500 — Incorrect. Rs. 42,500 = 75,000 − 4 × 8,125 is the book value at the end of 4 years, not 5.
CBSE Applied Mathematics (Class XII):
Depreciation
