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CUET · MATHS · PYQ PAPER 2025

If the price of a machinery costing ₹ 25000 is expected to have a useful life of 4 years and a scrap value of ₹ 5000 . Then the annual depreciation by linear method is:

  1. A ₹ 10000
  2. B ₹ 6500
  3. C ₹ 5000
  4. D ₹ 4000
Verified Solution

Answer & Solution

Correct Answer

(C) ₹ 5000

Step-by-step Solution

Detailed explanation

\( \text{Annual Depreciation} = \frac{\text{Cost} - \text{Scrap Value}}{\text{Useful Life}} \) \( \text{Annual Depreciation} = \frac{ 25000 - 5000}{4} \) \( \text{Annual Depreciation} = \frac{ 20000}{4} \) \( \text{Annual Depreciation} =\) ₹ \(5000 \)