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Original cost = Rs 1,26,000. Salvage value = 6,000. Useful Life = 6 years. Annual depreciation under SLM =
- a)21,000
- b)20,000
- c)15,000
- d)14,000
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Original cost = Rs 1,26,000. Salvage value = 6,000. Useful Life = 6 ye...
To calculate the annual depreciation using the Straight-Line Method (SLM), we follow a systematic approach
- Identify the variables involved in the calculation. We have:
- Original Cost (C) = Rs. 126,000
- Salvage Value (S) = Rs. 6,000
- Useful Life (L) = 6 years
- Apply the formula for annual depreciation (D) under the Straight-Line Method, which is given by:
- Substitute the identified values into the formula:
- Simplify the equation. First, calculate the difference between the original cost and the salvage value:
126000 - 6000 = 120000 - Now, divide this result by the useful life:
Thus, the annual depreciation under the Straight-Line Method is Rs. 20,000
Most Upvoted Answer
Original cost = Rs 1,26,000. Salvage value = 6,000. Useful Life = 6 ye...
Solution:
Here, we are given:
Original cost = Rs 1,26,000
Salvage value = Rs 6,000
Useful life = 6 years
We can use the straight-line method (SLM) of depreciation to calculate the annual depreciation expense.
Under SLM, the annual depreciation expense is calculated as follows:
Depreciation expense = (Original cost - Salvage value) / Useful life
Substituting the given values, we get:
Depreciation expense = (1,26,000 - 6,000) / 6
Depreciation expense = 1,20,000 / 6
Depreciation expense = 20,000
Therefore, the annual depreciation expense under SLM is Rs 20,000.
Hence, the correct option is (b) 20,000.
Here, we are given:
Original cost = Rs 1,26,000
Salvage value = Rs 6,000
Useful life = 6 years
We can use the straight-line method (SLM) of depreciation to calculate the annual depreciation expense.
Under SLM, the annual depreciation expense is calculated as follows:
Depreciation expense = (Original cost - Salvage value) / Useful life
Substituting the given values, we get:
Depreciation expense = (1,26,000 - 6,000) / 6
Depreciation expense = 1,20,000 / 6
Depreciation expense = 20,000
Therefore, the annual depreciation expense under SLM is Rs 20,000.
Hence, the correct option is (b) 20,000.
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Community Answer
Original cost = Rs 1,26,000. Salvage value = 6,000. Useful Life = 6 ye...
According to SLM ,
Depreciation = Cost of Asset - Salvage value / useful life
126000-6000/6 = 20000
Depreciation = Cost of Asset - Salvage value / useful life
126000-6000/6 = 20000
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Original cost = Rs 1,26,000. Salvage value = 6,000. Useful Life = 6 years. Annual depreciation under SLM =a)21,000b)20,000c)15,000d)14,000Correct answer is option 'B'. Can you explain this answer?
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