PRC-1 · Chapter 6 · Question 68 of 100
Following the previous scenario (Cost 100k, RV 10k, Life 5 yrs), what is the exact depreciation charge for the FIFTH year (2025) using the sum-of-the-years'-digits method?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Rs. 6,000
Explanation
The depreciable amount remains 90,000. The fraction for the final (fifth) year is 1/15. Depreciation = 90,000 x (1/15) = Rs. 6,000.
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