A bike costs Rs. 85,000 and has a useful life of 15 years. If the scrap value of the bike after 15 years is Rs. 10,000, then the book value of the bike at the end of the tenth year is
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Rs. 35,000
Under the straight-line method, the bike loses the same amount every year:
\( \displaystyle \text{Depreciation per year}=\frac{\text{Cost}-\text{Scrap value}}{\text{Useful life}} \)
\( \displaystyle =\frac{85000-10000}{15} \)
\( \displaystyle =\text{Rs. }5000 \)
After 10 years:
\( \displaystyle \text{Book value}=85000-10\times5000 \)
\( \displaystyle =\text{Rs. }35{,}000 \)
CBSE Applied Mathematics (Class XII):
Depreciation
