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CUET · MATHS · PYQ PAPER 2025

A machine costing Rs. \(2,00,000\) has a useful life of 5 years. The estimated scrap value is Rs. 20,000 . By using straight line method, the annual depreciation is

  1. A Rs.18,000
  2. B Rs.25,000
  3. C Rs.36,000
  4. D Rs.40,000
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Answer & Solution

Correct Answer

(C) Rs.36,000

Step-by-step Solution

Detailed explanation

\( \text{Depreciation} = \frac{\text{Cost} - \text{Scrap Value}}{\text{Useful Life}} \) \( = \frac{2,00,000 - 20,000}{5} \) \( = \frac{1,80,000}{5} \) \( = 36,000 \)
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