Question

    An asset bought at Rs.10 lakh was sold for Rs.4 lakh after 3 years. What is the depreciation charged on the asset per year as per straight line method?

    A 1.33 lakh Correct Answer Incorrect Answer
    B 2 lakh Correct Answer Incorrect Answer
    C 3.33 lakh Correct Answer Incorrect Answer
    D 6 lakh Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Depreciation = (Cost – salvage value) / life of asset                         = (10 lakh – 4 lakh) / 3                         = 2 lakh  

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