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Original Cost = Rs 1,00,000. Life = 5 years. Expected salvage value = Rs. 2,000.
Q. Depreciation for 3rd year as per straight line method is
- a)Rs. 12,800
- b)Rs. 19,600
- c)Rs. 20,000
- d)Rs. 20,400
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Original Cost = Rs 1,00,000. Life = 5 years. Expected salvage value = ...
Given:
- Original cost = ₹1,00,000
- Salvage value = ₹2,000
- Useful life = 5 years
Step 1: Calculate the depreciable amount
Depreciable amount = Original cost - Salvage value
Depreciable amount = ₹1,00,000 − ₹2,000 = ₹98,000
Step 2: Calculate the annual depreciation
Step 3: Depreciation for the 3rd year
Since depreciation is equal every year under the Straight Line Method, the depreciation for the 3rd year will also be ₹19,600.
The depreciation for the 3rd year is ₹19,600, so the correct answer is Option B: ₹19,600.
Most Upvoted Answer
Original Cost = Rs 1,00,000. Life = 5 years. Expected salvage value = ...
Yearly depreciation = original cost - salvage value /life
= 100000 - 2000 /5
= 19600
= 100000 - 2000 /5
= 19600
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Original Cost = Rs 1,00,000. Life = 5 years. Expected salvage value = ...
Depreciation for 3rd year as per straight line method:
Given information:
- Original Cost = Rs 1,00,000
- Life = 5 years
- Expected salvage value = Rs 2,000
Straight Line Method:
Straight line method is one of the simplest and most commonly used methods of calculating depreciation. Under this method, the same amount of depreciation is charged every year over the useful life of the asset.
Formula:
Depreciation expense per year = (Original Cost - Salvage Value) / Useful Life
Calculation:
Using the formula, we can calculate the depreciation expense per year:
Depreciation expense per year = (Rs 1,00,000 - Rs 2,000) / 5
= Rs 98,000 / 5
= Rs 19,600
Therefore, the depreciation for the 3rd year as per straight line method is Rs 19,600.
Conclusion:
The correct answer is option 'B' (Rs 19,600).
Given information:
- Original Cost = Rs 1,00,000
- Life = 5 years
- Expected salvage value = Rs 2,000
Straight Line Method:
Straight line method is one of the simplest and most commonly used methods of calculating depreciation. Under this method, the same amount of depreciation is charged every year over the useful life of the asset.
Formula:
Depreciation expense per year = (Original Cost - Salvage Value) / Useful Life
Calculation:
Using the formula, we can calculate the depreciation expense per year:
Depreciation expense per year = (Rs 1,00,000 - Rs 2,000) / 5
= Rs 98,000 / 5
= Rs 19,600
Therefore, the depreciation for the 3rd year as per straight line method is Rs 19,600.
Conclusion:
The correct answer is option 'B' (Rs 19,600).
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Original Cost = Rs 1,00,000. Life = 5 years. Expected salvage value = Rs. 2,000.Q. Depreciation for 3rd year as per straight line method isa)Rs. 12,800b)Rs. 19,600c)Rs. 20,000d)Rs. 20,400Correct answer is option 'B'. Can you explain this answer?
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Original Cost = Rs 1,00,000. Life = 5 years. Expected salvage value = Rs. 2,000.Q. Depreciation for 3rd year as per straight line method isa)Rs. 12,800b)Rs. 19,600c)Rs. 20,000d)Rs. 20,400Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Original Cost = Rs 1,00,000. Life = 5 years. Expected salvage value = Rs. 2,000.Q. Depreciation for 3rd year as per straight line method isa)Rs. 12,800b)Rs. 19,600c)Rs. 20,000d)Rs. 20,400Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Original Cost = Rs 1,00,000. Life = 5 years. Expected salvage value = Rs. 2,000.Q. Depreciation for 3rd year as per straight line method isa)Rs. 12,800b)Rs. 19,600c)Rs. 20,000d)Rs. 20,400Correct answer is option 'B'. Can you explain this answer?.
Original Cost = Rs 1,00,000. Life = 5 years. Expected salvage value = Rs. 2,000.Q. Depreciation for 3rd year as per straight line method isa)Rs. 12,800b)Rs. 19,600c)Rs. 20,000d)Rs. 20,400Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Original Cost = Rs 1,00,000. Life = 5 years. Expected salvage value = Rs. 2,000.Q. Depreciation for 3rd year as per straight line method isa)Rs. 12,800b)Rs. 19,600c)Rs. 20,000d)Rs. 20,400Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Original Cost = Rs 1,00,000. Life = 5 years. Expected salvage value = Rs. 2,000.Q. Depreciation for 3rd year as per straight line method isa)Rs. 12,800b)Rs. 19,600c)Rs. 20,000d)Rs. 20,400Correct answer is option 'B'. Can you explain this answer?.
Solutions for Original Cost = Rs 1,00,000. Life = 5 years. Expected salvage value = Rs. 2,000.Q. Depreciation for 3rd year as per straight line method isa)Rs. 12,800b)Rs. 19,600c)Rs. 20,000d)Rs. 20,400Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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