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If the original cost of a building is Rs. 25,00,000/- and its scrap value after 55 years is Rs.25,000/-, then its annual depreciation (in Rs.) using straight line method is
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- 25,000
- 35,000
- 45,000
- 55,000
Correct Option: C
Original cost = 2500000
Scrap value after 55 years = 25000
Depreciation for 55 years = 2500000 – 25000 = 2475000
Depreciation per year = 2475000/55 = 45000