Question
A machinery costing ₹10 lakhs has a useful life of 5
years and a salvage value of ₹1 lakh. Using the straight-line method, the firm changes the useful life to 6 years from year 3 onwards. Calculate depreciation for year 3.Solution
Original Dep = (10–1)/5 = ₹1.8L/year Depreciation till Year 2 = ₹3.6L Remaining value = ₹6.4L Remaining life = 4 years → New dep = ₹6.4L / 4 = ₹1.6L
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