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Initially the cost of a component is Rs.500000. The salvage value at the end of its useful life of 15 years is 380000. What will be the book value at the end of second year of its useful life, by straight line method?
  • a)
    Rs.480000
  • b)
    Rs.484000
  • c)
    Rs.400000
  • d)
    Rs.350000
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Initially the cost of a component is Rs.500000. The salvage value at t...
Annual depreciation = (original cost-salvage value)/useful life
Annual depreciation = (500000-380000)/15= Rs.8000
Book value at the end of second year = 500000- 2 x 8000 = Rs.484000
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Initially the cost of a component is Rs.500000. The salvage value at the end of its useful life of 15 years is 380000. What will be the book value at the end of second year of its useful life, by straight line method?a)Rs.480000b)Rs.484000c)Rs.400000d)Rs.350000Correct answer is option 'B'. Can you explain this answer?
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Initially the cost of a component is Rs.500000. The salvage value at the end of its useful life of 15 years is 380000. What will be the book value at the end of second year of its useful life, by straight line method?a)Rs.480000b)Rs.484000c)Rs.400000d)Rs.350000Correct answer is option 'B'. Can you explain this answer? for Civil Engineering (CE) 2024 is part of Civil Engineering (CE) preparation. The Question and answers have been prepared according to the Civil Engineering (CE) exam syllabus. Information about Initially the cost of a component is Rs.500000. The salvage value at the end of its useful life of 15 years is 380000. What will be the book value at the end of second year of its useful life, by straight line method?a)Rs.480000b)Rs.484000c)Rs.400000d)Rs.350000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Civil Engineering (CE) 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Initially the cost of a component is Rs.500000. The salvage value at the end of its useful life of 15 years is 380000. What will be the book value at the end of second year of its useful life, by straight line method?a)Rs.480000b)Rs.484000c)Rs.400000d)Rs.350000Correct answer is option 'B'. Can you explain this answer?.
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