The purchase cost of asset is 25000, the salvage value is Rs 5000 and useful life is 5 years then the depreciation/year of asset i

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The purchase cost of asset is 25000, the salvage value is Rs 5000 and useful life is 5 years then the depreciation/year of asset isThe purchase cost of asset is 25000, the salvage value is Rs 5000 and useful life is 5 years then the depreciation/year of asset is

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Emma

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  1. Given : The purchase cost of asset is 25000, the salvage value is Rs 5000 and useful life is 5 years

    To Find : the depreciation/year of asset

    Solution:

    The purchase cost of asset = 25000 Rs

    Salvage value is Rs 5000

    useful life = 5 years

    Depreciation in 5 years = 25000 – 5000 = Rs 20000

    depreciation/year of asset = 20000/5 = Rs 4000

    the depreciation/year of asset = Rs 4000

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