CA CPT Exam > CA CPT Questions > Original cost Rs. 25,000, salvage value Rs. 1...
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Original cost Rs. 25,000, salvage value Rs. 1,000, useful life 10 years. Annual depreciation under SLM will be
- a)Rs. 2,000
- b)Rs. 2,400
- c)Rs. 3,000
- d)Rs. 2,500
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Original cost Rs. 25,000, salvage value Rs. 1,000, useful life 10 year...
Given Information:
- Original Cost: Rs. 25,000
- Salvage Value: Rs. 1,000
- Useful Life: 10 years
Calculation:
The straight-line method (SLM) of depreciation calculates an equal amount of depreciation for each year of the asset's useful life.
Step 1: Calculate Depreciation Expense Per Year
Depreciation Expense per year can be calculated using the formula:
Depreciation Expense = (Original Cost - Salvage Value) / Useful Life
Substituting the given values:
Depreciation Expense = (25,000 - 1,000) / 10
Depreciation Expense = 24,000 / 10
Depreciation Expense = 2,400
Therefore, the annual depreciation expense under the SLM method is Rs. 2,400.
Conclusion:
Option B, Rs. 2,400, is the correct answer.
- Original Cost: Rs. 25,000
- Salvage Value: Rs. 1,000
- Useful Life: 10 years
Calculation:
The straight-line method (SLM) of depreciation calculates an equal amount of depreciation for each year of the asset's useful life.
Step 1: Calculate Depreciation Expense Per Year
Depreciation Expense per year can be calculated using the formula:
Depreciation Expense = (Original Cost - Salvage Value) / Useful Life
Substituting the given values:
Depreciation Expense = (25,000 - 1,000) / 10
Depreciation Expense = 24,000 / 10
Depreciation Expense = 2,400
Therefore, the annual depreciation expense under the SLM method is Rs. 2,400.
Conclusion:
Option B, Rs. 2,400, is the correct answer.
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Original cost Rs. 25,000, salvage value Rs. 1,000, useful life 10 years. Annual depreciation under SLM will bea)Rs. 2,000b)Rs. 2,400c)Rs. 3,000d)Rs. 2,500Correct answer is option 'B'. Can you explain this answer?
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Original cost Rs. 25,000, salvage value Rs. 1,000, useful life 10 years. Annual depreciation under SLM will bea)Rs. 2,000b)Rs. 2,400c)Rs. 3,000d)Rs. 2,500Correct answer is option 'B'. Can you explain this answer? for CA CPT 2025 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about Original cost Rs. 25,000, salvage value Rs. 1,000, useful life 10 years. Annual depreciation under SLM will bea)Rs. 2,000b)Rs. 2,400c)Rs. 3,000d)Rs. 2,500Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA CPT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Original cost Rs. 25,000, salvage value Rs. 1,000, useful life 10 years. Annual depreciation under SLM will bea)Rs. 2,000b)Rs. 2,400c)Rs. 3,000d)Rs. 2,500Correct answer is option 'B'. Can you explain this answer?.
Original cost Rs. 25,000, salvage value Rs. 1,000, useful life 10 years. Annual depreciation under SLM will bea)Rs. 2,000b)Rs. 2,400c)Rs. 3,000d)Rs. 2,500Correct answer is option 'B'. Can you explain this answer? for CA CPT 2025 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about Original cost Rs. 25,000, salvage value Rs. 1,000, useful life 10 years. Annual depreciation under SLM will bea)Rs. 2,000b)Rs. 2,400c)Rs. 3,000d)Rs. 2,500Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA CPT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Original cost Rs. 25,000, salvage value Rs. 1,000, useful life 10 years. Annual depreciation under SLM will bea)Rs. 2,000b)Rs. 2,400c)Rs. 3,000d)Rs. 2,500Correct answer is option 'B'. Can you explain this answer?.
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