AALL10 · Chapter 10Project Planning & Implementation🏛️ Past Licensure QuestionID: 22a0e515
Calculate the annual depreciation expense using the Straight-Line Method for a building with an initial cost of Rs. 3,00,000, an estimated salvage/scrap value of Rs. 1,00,000, and an economic useful life of 10 years.
Calculate the annual depreciation expense using the Straight-Line Method for a building with an initial cost of Rs. 3,00,000, an estimated salvage/scrap value of Rs. 1,00,000, and an economic useful life of 10 years.
Multiple Choice Options
- A
Rs. 10,000 per year
- B
Rs. 15,000 per year
- C✓ Correct Option
Rs. 20,000 per year
- D
Rs. 30,000 per year
Detailed Technical Solution & Explanation
Under the Straight-Line Depreciation Method:
Option Analysis:
•
Option A (Rs. 10,000 per year): Arithmetically incorrect.
•
Option B (Rs. 15,000 per year): Arithmetically incorrect.
•
Option C (Rs. 20,000 per year): Correct. .
•
Option D (Rs. 30,000 per year): Computed by ignoring scrap value entirely.
Reference: Mock Test 07NEC Licensure Syllabus