A mobile phone costing ₹50000 has a useful life of 5 years. If the annual depreciation is ₹5000, then by using a linear method, its scrap value is

₹25000

The correct answer is Option (1) → ₹25000 **

The cost of the mobile phone is ₹50000.

The annual depreciation is ₹5000 and the useful life is 5 years.

Total depreciation over 5 years:

$5\times 5000 = 25000$

Scrap value = Original cost − Total depreciation

$50000 - 25000 = 25000$

The scrap value of the mobile phone is ₹25000.

Thus, the required scrap value is ₹25000.