A test facility setup coast Rs. 10,00,000 at the time of installation, and its scrap value is Rs. 50,000 at the end of the useful life in 10 years. Adopting a straight line method for computation of depreciation, estimate the book value of the facility at the end of five years.

A test facility setup coast Rs. 10,00,000 at the time of installation,

1.	A test facility setup coast Rs. 10,00,000 at the time of installation, and its scrap value is Rs. 50,000 at the end of the useful life in 10 years. Adopting a straight line method for computation of depreciation, estimate the book value of the facility at the end of five years.
A.	Rs. 5,75,000
B.	Rs. 4,75,000
C.	Rs. 5,00,000
D.	Rs. 5,25,000
Answer» E.

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A test facility setup coast Rs. 10,00,000 at the time of installation, and its scrap value is Rs. 50,000 at the end of the useful life in 10 years. Adopting a straight line method for computation of depreciation, estimate the book value of the facility at the end of five years.

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