SSC JE Civil Engineering 25-Sep-2019 Shift 1 Solved Paper

Question : 177 of 200

Marks: +1, -0

A test facility setup costs Rs.10,00,000 at the timeof installation, and its scrap value is Rs. 50,000 atthe end of the useful life in 10 years. Adopting astraight line method for computation ofdepreciation, estimate the book value of thefacility at the end of five years.

Rs. 4,75,000
Rs. 5,25,000
Rs.5,75,000
Rs.5,00,000

Validate

Solution:

As given that,
Initial cost = 1000000
Scrap value = 50000 after 10 year.
Depreciation value = (1000000 – 50000) = 950000
So, depreciation per 10 year =

[ 950000/10]=95000

Hence, The book value of the facility at the end of five years. \text ""= [1000000 – 5 × 95000] = 525000 Rs.

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