The original cost of an equipment is Rs.10,000/-.

Question

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/-

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