A machine costs ₹1,20,000 and is depreciated by ₹15,000 a year by the linear method. What is its book value after 5 years?

Explanation

1. 01

   Five years of depreciation: $5 \times 15{,}000 = 75{,}000$.

2. 02

   Book value $= 1{,}20{,}000 - 75{,}000 = 45{,}000$ rupees.