CUET · MATHS · PYQ PAPER 2023
A main frame computer whose cost is₹ 5,00,000 will depreciate to a scrap value of 50,000 in 5 years. Using the linear method of depreciation, the book value of the computer at the end of 3 years will be :
- A ₹ 90,000
- B ₹ 180,000
- C ₹ 2,70,000
- D ₹ 2,30,000
Answer & Solution
Correct Answer
(D) ₹ 2,30,000
Step-by-step Solution
Detailed explanation
Annual Depreciation \( = \frac{\text{₹ 5,00,000} - \text{₹ 50,000}}{5} = \text{₹ 90,000} \) Book Value at end of 3 years \( = \text{₹ 5,00,000} - (\text{₹ 90,000} \times 3) = \text{₹ 5,00,000} - \text{₹ 2,70,000} = \text{₹ 2,30,000} \)
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