GATE 2024 AR — Architecture – Question 44
Equipment costs₹50000 and has 15% salvage after 5 years. Using straight-line depreciation, find its book value after 3 years in rupees, as an integer.
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Correct answer: 24500 to 24500
Explanation
Salvage is 0.15×50000=₹7500. Annual depreciation is(50000−7500)/5=₹8500. After 3 years, book value is 50000−3×8500=₹24500. Depreciation is charged on depreciable cost, not on the full purchase price.