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    Question

    If an asset is purchased for ₹1,00,000 with a residual

    value of ₹10,000 and a life of 9 years, the annual depreciation under the Straight Line Method (SLM) is:
    A ₹11,111 Correct Answer Incorrect Answer
    B ₹10,000 Correct Answer Incorrect Answer
    C ₹9,000 Correct Answer Incorrect Answer
    D ₹12,000 Correct Answer Incorrect Answer
    E ₹1,000 Correct Answer Incorrect Answer

    Solution

    Depreciation = (Cost - Residual Value) / Life. ($100,000 - 10,000$) / $9$ = $10,000$.

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