A television set costing ₹50,000 has a useful life of 14 years. If annual depreciation is ₹3,000, its scrap value will be :
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → ₹8,000
Using straight line depreciation method,
$\text{Scrap value = Cost price - (Annual depreciation × life)}$
$= 50,000 - (3,000 × 14)$
$=8,000$