A car was purchased for Rs55000. Its residual value was estimated to be Rs5000 w

Question

A car was purchased for Rs55000. Its residual value was estimated to be Rs5000 with useful life of 5 years. What will be the depreciation expense?

Options:

A . 12000

B . 11000

C . 10000

D . 6000

Answer: Option C
:
C
Depreciation = (55000-5000)/5

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