A machine costs Rs. 200000, salvage value Rs. 50000, life 10 years. Annual straight-line depreciation is

Straight-line method (SLM) depreciation: annual depreciation D = (C - S) / n, where C = initial cost, S = salvage (residual) value at end of useful life, n = useful life (years). Annual depreciation is constant. Book value = C - D*t at year t. Simpler than reducing balance or sinking fund methods; widely used in construction plant and equipment costing. Annual depreciation=(C-S)/n=Rs. 15000.

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