A machine costing Rs 30000 is expected to have a useful of 13 years and a final scrap value of Rs 4000 . Find the annual depreciation charge using straight line method.
Answer & explanation
Correct answer: option 1
The correct answer is option (1) : ₹2000
Original cost $=₹30,000$
Scrap value $=₹4000$
Useful life $= 13\, years $
∴ Annual depreciation $=\frac{30000-4000}{13}$
$= ₹ 2000$