With referce to above subject,ABC Company purchased Machinery for Rs. 380000.00 & it's useful life is 12 Years & at the time of purchase Scrap Value is 20000.00. Company Charge Streightline Depreciation method.
After two years its scrap value is increase by 30000.00
29 June 2008
after 2 years the value of the asset is shown as 300000. then at that time ur scrap will be increased by 30000 that means depreciation should be calculated on (300000-30000) for the remaining life of the asset that is 10 years.
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