A machine costs ₹2,00,000 and is depreciated by ₹18,000 a year by the linear method. What is its book value after 4 years?

Explanation

1. 01

   Each year the book value falls by the same ₹18,000: in 4 years, $4 \times 18{,}000 = 72{,}000$.

2. 02

   Book value $= 2{,}00{,}000 - 72{,}000 = 1{,}28{,}000$ rupees.