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CUET · MATHS · PYQ PAPER 2025

If an asset costs Rs. 50,000 with an estimated useful life of 6 years and a scrap value of Rs. 5000. Then by using a linear depreciation method, the annual depreciation of the asset will be:

  1. A Rs. 7,000
  2. B Rs. 7,500
  3. C Rs. 7,800
  4. D Rs. 8,000
Verified Solution

Answer & Solution

Correct Answer

(B) Rs. 7,500

Step-by-step Solution

Detailed explanation

Annual Depreciation \( = \frac{\text{Cost} - \text{Scrap Value}}{\text{Useful Life}} \) \( = \frac{50000 - 5000}{6} \) \( = \frac{45000}{6} \) \( = \text{Rs. } 7500 \)