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CUET · MATHS · PYQ PAPER 2025

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

  1. A ₹ 25000
  2. B ₹ 30000
  3. C ₹ 20000
  4. D ₹ 15000
Verified Solution

Answer & Solution

Correct Answer

(A) ₹ 25000

Step-by-step Solution

Detailed explanation

Total Depreciation = Annual Depreciation \(\times\) Useful Life Total Depreciation = \(5000 \times 5 = 25000\) Scrap Value = Cost \(- \) Total Depreciation Scrap Value = \(50000 - 25000 = 25000\)