As per Straight Line Method of depreciation, what is the per year depreciation charged if machine cost is Rs. 2 lakh and useful life is 8 years and residual value is Rs.40,000?

Depreciation as per Straight Line Method = (Purchase Price of Asset - Residual Value) / Estimated Useful Life of Asset Here Purchase Price = Rs.200,000 Residual Value= Rs.40,000 Useful Life of Asset = 8 years Depreciation as per Straight Line Method= (200,000-40,000)/8 = 160,000/8 = Rs.20,000 per year. If residual value is not given we can consider it as 0. Sometimes they will give yearly depreciation in % then we we can calculate useful life. e.g 10% means useful life is 10 years. 20% means useful life is 5 years 25% means useful life is 4 years. Useful Life = 100/depreciation percentage every year