Examveda
Examveda

The original cost of an equipment is Rs.10,000. Its salvage value at the end of its total useful life of five years is Rs. 1,000. Its book value at the end of two years of its useful life (as per straight line method of evaluation of depreciation) will be

A. Rs. 8,800

B. Rs. 7,600

C. Rs. 6,400

D. Rs. 5,000

Answer: Option C


Join The Discussion

Comments ( 3 )

  1. Akhila C
    Akhila C :
    3 years ago

    Annual depreciation=(10000-1000)/5 =1800
    Book value= original cost- (annual.D***years)

    =10000-(1800**2)
    =6400

  2. Bharath Kumar
    Bharath Kumar :
    3 years ago

    10000-1000=9000
    9000/5=1800
    10000-(1800*2)
    6400

  3. Lalit Mishra
    Lalit Mishra :
    3 years ago

    10000-1000)/5=1800
    10000-2*1800=6400

Related Questions on Construction Planning and Management

If to, tp and tm are the optimistic, pessimistic and most likely time estimates of an activity respectively, the expected time t of the activity will be

A. $$\frac{{{{\text{t}}_{\text{o}}} + 3{{\text{t}}_{\text{m}}} + {{\text{t}}_{\text{p}}}}}{2}$$

B. $$\frac{{{{\text{t}}_{\text{o}}} + 3{{\text{t}}_{\text{m}}} + {{\text{t}}_{\text{p}}}}}{3}$$

C. $$\frac{{{{\text{t}}_{\text{o}}} + 4{{\text{t}}_{\text{m}}} + {{\text{t}}_{\text{p}}}}}{4}$$

D. $$\frac{{{{\text{t}}_{\text{o}}} + 4{{\text{t}}_{\text{m}}} + {{\text{t}}_{\text{p}}}}}{5}$$

E. $$\frac{{{{\text{t}}_{\text{o}}} + 4{{\text{t}}_{\text{m}}} + {{\text{t}}_{\text{p}}}}}{6}$$