{"id":8402,"date":"2024-04-15T03:00:04","date_gmt":"2024-04-15T03:00:04","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=8402"},"modified":"2024-04-15T03:00:04","modified_gmt":"2024-04-15T03:00:04","slug":"the-original-cost-of-an-equipment-is-rs-10000-its-salvage-value-at-the-end-of-its-total-useful-life-of-five-years-is-rs-1000-its-book-value-at-the-end-of-two-years-of-its-useful-life-as-per-stra","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/the-original-cost-of-an-equipment-is-rs-10000-its-salvage-value-at-the-end-of-its-total-useful-life-of-five-years-is-rs-1000-its-book-value-at-the-end-of-two-years-of-its-useful-life-as-per-stra\/","title":{"rendered":"The original cost of an equipment is Rs.10,000. Its salvage value at the end of its total useful life of five years is Rs. 1,000. Its book value at the end of two years of its useful life (as per straight line method of evaluation of depreciation) will be A. Rs. 8,800 B. Rs. 7,600 C. Rs. 6,400 D. Rs. 5,000"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Rs. 8,800&#8243; option2=&#8221;Rs. 7,600&#8243; option3=&#8221;Rs. 6,400&#8243; option4=&#8221;Rs. 5,000&#8243; correct=&#8221;option3&#8243;]<!--more--><\/p>\n<p>The correct answer is: <strong>C. Rs. 6,400<\/strong><\/p>\n<p>The straight-line method of depreciation is a method of calculating depreciation that allocates an equal amount of the cost of an asset to each accounting period over its useful life. The formula for calculating depreciation using the straight-line method is:<\/p>\n<p>Depreciation = (Cost &#8211; Salvage value) \/ Useful life<\/p>\n<p>In this case, the cost of the asset is Rs. 10,000, the salvage value is Rs. 1,000, and the useful life is 5 years. Therefore, the depreciation for each year is:<\/p>\n<p>Depreciation = (10,000 &#8211; 1,000) \/ 5 = 1,800<\/p>\n<p>The book value of the asset at the end of two years is therefore:<\/p>\n<p>Book value = Cost &#8211; Depreciation<\/p>\n<p>= 10,000 &#8211; (2 x 1,800) = 6,400<\/p>\n<p>The other options are incorrect because they do not take into account the salvage value of the asset.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Rs. 8,800&#8243; option2=&#8221;Rs. 7,600&#8243; option3=&#8221;Rs. 6,400&#8243; option4=&#8221;Rs. 5,000&#8243; correct=&#8221;option3&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[655],"tags":[],"class_list":["post-8402","post","type-post","status-publish","format-standard","hentry","category-construction-planning-and-management","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The original cost of an equipment is Rs.10,000. Its salvage value at the end of its total useful life of five years is Rs. 1,000. Its book value at the end of two years of its useful life (as per straight line method of evaluation of depreciation) will be A. Rs. 8,800 B. Rs. 7,600 C. Rs. 6,400 D. Rs. 5,000<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/the-original-cost-of-an-equipment-is-rs-10000-its-salvage-value-at-the-end-of-its-total-useful-life-of-five-years-is-rs-1000-its-book-value-at-the-end-of-two-years-of-its-useful-life-as-per-stra\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The original cost of an equipment is Rs.10,000. Its salvage value at the end of its total useful life of five years is Rs. 1,000. Its book value at the end of two years of its useful life (as per straight line method of evaluation of depreciation) will be A. Rs. 8,800 B. Rs. 7,600 C. Rs. 6,400 D. Rs. 5,000\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Rs. 8,800&#8243; option2=&#8221;Rs. 7,600&#8243; option3=&#8221;Rs. 6,400&#8243; option4=&#8221;Rs. 5,000&#8243; correct=&#8221;option3&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/the-original-cost-of-an-equipment-is-rs-10000-its-salvage-value-at-the-end-of-its-total-useful-life-of-five-years-is-rs-1000-its-book-value-at-the-end-of-two-years-of-its-useful-life-as-per-stra\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-15T03:00:04+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"The original cost of an equipment is Rs.10,000. Its salvage value at the end of its total useful life of five years is Rs. 1,000. Its book value at the end of two years of its useful life (as per straight line method of evaluation of depreciation) will be A. Rs. 8,800 B. Rs. 7,600 C. Rs. 6,400 D. Rs. 5,000","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/the-original-cost-of-an-equipment-is-rs-10000-its-salvage-value-at-the-end-of-its-total-useful-life-of-five-years-is-rs-1000-its-book-value-at-the-end-of-two-years-of-its-useful-life-as-per-stra\/","og_locale":"en_US","og_type":"article","og_title":"The original cost of an equipment is Rs.10,000. Its salvage value at the end of its total useful life of five years is Rs. 1,000. Its book value at the end of two years of its useful life (as per straight line method of evaluation of depreciation) will be A. Rs. 8,800 B. Rs. 7,600 C. Rs. 6,400 D. Rs. 5,000","og_description":"[amp_mcq option1=&#8221;Rs. 8,800&#8243; option2=&#8221;Rs. 7,600&#8243; option3=&#8221;Rs. 6,400&#8243; option4=&#8221;Rs. 5,000&#8243; correct=&#8221;option3&#8243;]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/the-original-cost-of-an-equipment-is-rs-10000-its-salvage-value-at-the-end-of-its-total-useful-life-of-five-years-is-rs-1000-its-book-value-at-the-end-of-two-years-of-its-useful-life-as-per-stra\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-15T03:00:04+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/the-original-cost-of-an-equipment-is-rs-10000-its-salvage-value-at-the-end-of-its-total-useful-life-of-five-years-is-rs-1000-its-book-value-at-the-end-of-two-years-of-its-useful-life-as-per-stra\/","url":"https:\/\/exam.pscnotes.com\/mcq\/the-original-cost-of-an-equipment-is-rs-10000-its-salvage-value-at-the-end-of-its-total-useful-life-of-five-years-is-rs-1000-its-book-value-at-the-end-of-two-years-of-its-useful-life-as-per-stra\/","name":"The original cost of an equipment is Rs.10,000. 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Its salvage value at the end of its total useful life of five years is Rs. 1,000. Its book value at the end of two years of its useful life (as per straight line method of evaluation of depreciation) will be A. Rs. 8,800 B. Rs. 7,600 C. Rs. 6,400 D. Rs. 5,000"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/8402","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=8402"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/8402\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=8402"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=8402"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=8402"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}