The original cost of an equipment is Rs.10,000. Its salvage value at the end of its total useful life of five years is Rs. 1,000. Its book value at the end of two years of its useful life (as per straight line method of evaluation of depreciation) will be

• A. Rs. 6,400
• B. Rs. 7,600
• C. Rs. 8,800
• D. Rs. 5,000

Answer: (A)