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Business Data Management · Quiz 2 · 16 Aug 2026 · May 2026 term

Question 19: An asset with an original cost of ₹21,000 and a salvage …

Question 19

+3 marksOne correct option

An asset with an original cost of ₹21,000 and a salvage value of ₹1,000 has an estimated useful life of 5 years. If the company chooses to use the Straight-Line method (SLM) for depreciation, how much higher or lower will the Book Value be at the end of Year 2 compared to using a WDV rate of 20%?

  1. A

    ₹0

  2. B

    ₹440 lower

  3. C

    ₹440 higher

  4. D

    ₹1,000 lower

Show answer

Correct answer

  • B

    ₹440 lower

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Question 19 of 24 in the IIT Madras BS Business Data Management (BDM) Quiz 2 paper sat on 16 Aug 2026, in the May 2026 term (Business Data Management 14 Aug 26). It carries 3 marks.

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