Question

13. A machine of cost Rs. 12,00,000 is depreciated straight-line assuming 10 year working life and zero
residual value for three years. At the end of third year, the machine was revalued upwards by RS
60,000 the remaining useful life was reassessed at 9 years
Required
Calculote depreciation for the fourth year
PLEASE SEND COMPLETE PROCESS​

Answer 1

Answer:

step-1) calculate depreciation for 3 years

-> 1200000/10*3

-> 120000*3->360000

step-2) Calculate value of machinery after 3years i,e for 7years

-> 1200000-360000=840000

-> 7y =840000

step-3) after repair it's estimated life increased to 9years

->9y=840000+60000

=900000

4th year=900000/9=100000(SLM)

so now it's new costing become 900000

That's all bro