From Table 3.1 it is observed that the book value at the end of useful life i.e. 10 years in double-declining balance method is less than salvage value. Thus the equipment will be depreciated fully before the useful life. In other words the book value reaches the estimated salvage value before the end of useful life. As the book value of the equipment is not depreciated further after it has reached the estimated salvage value, the depreciation amount is adjusted accordingly. The book value of the construction equipment at the end of 8^th , 9^th , and 10^th years are Rs.587202.56, Rs.469762.05 and Rs.375809.64 respectively (from Table 3.1, Double-declining balance method). Similarly the depreciation amounts for 9^th and 10^th years are Rs.117440.51 and Rs.93952.41 respectively. Thus to match the book value with the estimated salvage value, the depreciation in 9^th year will be Rs.87202.56 (Rs.587202.56 – Rs.500000) and that in 10^th year will be zero. This will lead to book value of Rs.500000 (equal to salvage value) at the end of 9^th year and 10^th year. For this case, the switching from double-declining balance method to straight-line method can be carried out to ensure that the book value does not fall below the estimated salvage value and this procedure of switching is presented in Lecture 3 of this module.