An asset the life of which is estimated to be 8 years costs Rs 80000. If annual depreciation is Rs 9000, find its scrap value using linear method.
Answer & explanation
Correct answer: option 2
The correct answer is option (2) : ₹8000
$9000=\frac{80000-Scrap\, value }{8}$
Scrap value $= ₹8000$