An asset costing ₹50,000 has useful life of 4 years. The estimated scrap  value is ₹10,000. By using linear depreciation method, the book value at the end of the second year is :

₹30,000

The correct answer is Option (1) → ₹30,000

For annual depreciation:

Annual depreciation = $\frac{Cost\,of\,the\,sheet-Scrap\,value}{Useful\,life}$

$=\frac{50,000-10,000}{4}=10,000$

Book value = Cost of the asset - (Annual depreciation × No. of years)

$=50,000-(10,000×2)$

$=30,000$