An average useful life of a truck is 10 years, with final scrap value of Rs. 50,000. If the annual depreciation of the truck is Rs. 1,25,000, then the original cost of the truck is: |
Rs. 75,000 Rs. 1,75,000 Rs. 6,25,000 Rs. 13,00,000 |
Rs. 13,00,000 |
The correct answer is Option (4) → Rs. 13,00,000 $\text{Annual depreciation} = \frac{\text{Cost} - \text{Scrap}}{\text{Life}}$ $125000 = \frac{C - 50000}{10}$ $C - 50000 = 125000 \times 10 = 1250000$ $C = 1250000 + 50000 = 1300000$ The original cost of the truck is ₹13,00,000. |