UPSC Exam  >  UPSC Questions  >  A Plant & Machinery costing ` 80,00,000 is de... Start Learning for Free
A Plant & Machinery costing ` 80,00,000 is depreciated on straight line basis assuming 10 year working life and zero residual value, for four years. At the end of the fourth year, the machinery was revalued upwards by ` 3,20,000. The remaining useful life was reassessed at 8 years. Calculate Depreciation for the fifth year.?
Most Upvoted Answer
A Plant & Machinery costing ` 80,00,000 is depreciated on straight lin...
Depreciation Calculation for the Fifth Year
Depreciation is calculated based on the original cost of the asset, not its revalued amount.

Original Cost of Machinery:
- Plant & Machinery costing ` 80,00,000

Depreciation Rate:
- Straight-line basis over 10 years

Depreciation for the First four years:
- Depreciation per year = (Cost of Machinery - Residual Value) / Useful life
- Depreciation per year = (80,00,000 - 0) / 10 = ` 8,00,000
- Total Depreciation for 4 years = 4 x ` 8,00,000 = ` 32,00,000

Revaluation of Machinery:
- The machinery was revalued upwards by ` 3,20,000 after the fourth year

Remaining Useful Life:
- Useful life reassessed at 8 years after revaluation

Depreciation for the Fifth Year calculation:
- Remaining depreciable amount = Original Cost - Total Depreciation taken
- Remaining depreciable amount = 80,00,000 - 32,00,000 = ` 48,00,000
- Depreciation for the Fifth Year = Remaining depreciable amount / Remaining useful life
- Depreciation for the Fifth Year = 48,00,000 / 8 = ` 6,00,000
Therefore, the depreciation for the fifth year after revaluation will be ` 6,00,000.
Explore Courses for UPSC exam

Similar UPSC Doubts

Top Courses for UPSC

A Plant & Machinery costing ` 80,00,000 is depreciated on straight line basis assuming 10 year working life and zero residual value, for four years. At the end of the fourth year, the machinery was revalued upwards by ` 3,20,000. The remaining useful life was reassessed at 8 years. Calculate Depreciation for the fifth year.?
Question Description
A Plant & Machinery costing ` 80,00,000 is depreciated on straight line basis assuming 10 year working life and zero residual value, for four years. At the end of the fourth year, the machinery was revalued upwards by ` 3,20,000. The remaining useful life was reassessed at 8 years. Calculate Depreciation for the fifth year.? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about A Plant & Machinery costing ` 80,00,000 is depreciated on straight line basis assuming 10 year working life and zero residual value, for four years. At the end of the fourth year, the machinery was revalued upwards by ` 3,20,000. The remaining useful life was reassessed at 8 years. Calculate Depreciation for the fifth year.? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A Plant & Machinery costing ` 80,00,000 is depreciated on straight line basis assuming 10 year working life and zero residual value, for four years. At the end of the fourth year, the machinery was revalued upwards by ` 3,20,000. The remaining useful life was reassessed at 8 years. Calculate Depreciation for the fifth year.?.
Solutions for A Plant & Machinery costing ` 80,00,000 is depreciated on straight line basis assuming 10 year working life and zero residual value, for four years. At the end of the fourth year, the machinery was revalued upwards by ` 3,20,000. The remaining useful life was reassessed at 8 years. Calculate Depreciation for the fifth year.? in English & in Hindi are available as part of our courses for UPSC. Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of A Plant & Machinery costing ` 80,00,000 is depreciated on straight line basis assuming 10 year working life and zero residual value, for four years. At the end of the fourth year, the machinery was revalued upwards by ` 3,20,000. The remaining useful life was reassessed at 8 years. Calculate Depreciation for the fifth year.? defined & explained in the simplest way possible. Besides giving the explanation of A Plant & Machinery costing ` 80,00,000 is depreciated on straight line basis assuming 10 year working life and zero residual value, for four years. At the end of the fourth year, the machinery was revalued upwards by ` 3,20,000. The remaining useful life was reassessed at 8 years. Calculate Depreciation for the fifth year.?, a detailed solution for A Plant & Machinery costing ` 80,00,000 is depreciated on straight line basis assuming 10 year working life and zero residual value, for four years. At the end of the fourth year, the machinery was revalued upwards by ` 3,20,000. The remaining useful life was reassessed at 8 years. Calculate Depreciation for the fifth year.? has been provided alongside types of A Plant & Machinery costing ` 80,00,000 is depreciated on straight line basis assuming 10 year working life and zero residual value, for four years. At the end of the fourth year, the machinery was revalued upwards by ` 3,20,000. The remaining useful life was reassessed at 8 years. Calculate Depreciation for the fifth year.? theory, EduRev gives you an ample number of questions to practice A Plant & Machinery costing ` 80,00,000 is depreciated on straight line basis assuming 10 year working life and zero residual value, for four years. At the end of the fourth year, the machinery was revalued upwards by ` 3,20,000. The remaining useful life was reassessed at 8 years. Calculate Depreciation for the fifth year.? tests, examples and also practice UPSC tests.
Explore Courses for UPSC exam

Top Courses for UPSC

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev