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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

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Correct Answer: Option C
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3 Comments
Akhila C
Akhila C 6 years ago
Annual depreciation=(10000-1000)/5 =1800
Book value= original cost- (annual.D***years)

=10000-(1800**2)
=6400
Bharath Kumar
Bharath Kumar 6 years ago
10000-1000=9000
9000/5=1800
10000-(1800*2)
6400
Lalit Mishra
Lalit Mishra 6 years ago
10000-1000)/5=1800
10000-2*1800=6400