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After recognising an impairment loss on a non-revalued asset (CA reduced from ₹27.30 lakh to ₹12 lakh), remaining useful life 3 years, salvage Nil — current-year depreciation is:
A₹2 lakh
B₹6 lakh
C₹9.10 lakh
D₹4 lakh (= 12/3)
Answer & Solution
Correct answer: D. ₹4 lakh (= 12/3)
Depreciation reset = (revised CA 12 − salvage 0) / remaining useful life 3 = ₹4 lakh per year. The reset applies prospectively from the impairment date.
Related questions
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