An equipment that has an initial value of INR 6.5 lakhs and a service life of 5 years. Taking the salvage value of the equipment to be INR 50,000, which of the following statements is TRUE?
1
For the 2nd year, the depreciation using the linear method is INR 1.2 lakhs, and, the depreciation using sum of years methods is INR 1.6 lakhs.
2
For the 2nd year, the depreciation using the linear method is INR 1.6 lakhs, and, the depreciation using sum of years methods is INR 1.2 lakhs.
3
For the 2nd year, the depreciation using both the linear method and the sum of years methods is INR 1.6 lakhs.
4
For the 2nd year, the depreciation using both the linear method and the sum of years methods is INR 1.2 lakhs.