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    • Question

      An asset costing ₹12 lakh, useful life 10 years,

      residual value ₹2 lakh. Calculate annual depreciation using straight-line method (SLM).
      A ₹1.3 lakh Correct Answer Incorrect Answer
      B ₹1.1 lakh Correct Answer Incorrect Answer
      C ₹1 lakh Correct Answer Incorrect Answer
      D ₹1.2 lakh Correct Answer Incorrect Answer
      E ₹1.5 lakh Correct Answer Incorrect Answer

      Solution

      • Depreciable amount = ₹12 lakh – ₹2 lakh = ₹10 lakh. • Annual depreciation = ₹10 lakh / 10 = ₹1 lakh.

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