A sofa set costing ₹36000 has a useful life of 10 years. If the annual depreciation is ₹3000, then the scrap value by linear method is:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → ₹6000
Cost of sofa set $=36000$
Useful life $=10$ years
Annual depreciation $=3000$
Total depreciation over useful life
$=10\times3000=30000$
Scrap value
$=\text{Cost}-\text{Total depreciation}$
$=36000-30000$
$=6000$
The scrap value by linear method is ₹6000.