An asset was purchased for Rs. 10,000 and has a salvage value of Rs. 1,000 after a useful life of five years. Using the straight-line depreciation method, what will be the asset's book value after two years?

Construction Planning and Management MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

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Subject
Construction Planning and Managementcivil-engineering-mcqs › construction-planning-and-management
Published
19 Jan 2019
Last updated
28 May 2026

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Explanation

The asset depreciates evenly over five years. The annual depreciation is (10,000 - 1,000) / 5 = Rs. 1,800. After two years, total depreciation is 1,800 × 2 = Rs. 3,600. Therefore, the book value after two years is 10,000 - 3,600 = Rs. 6,400.

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