If the price of a machinery costing ₹25000 is expected to have a useful life of 4 years and a scrap value of ₹5000. Then the annual depreciation by linear method is:

₹5000

The correct answer is Option (3) → ₹5000

Cost of machine $=25000$

Scrap value $=5000$

Useful life $=4$ years

Annual Depreciation by linear method

$=\frac{25000-5000}{4}$

$=\frac{20000}{4}$

$=5000$

The annual depreciation is ₹5000.