Module 3 : Depreciation, Inflation and Taxes

Lecture 3 : Switching between different depreciation methods

Table 3.6 Double-declining balance method with switching to straight-line method

** Switching from DDB method to SL method

Further the total depreciation amount (i.e. initial cost less estimated salvage value) with switchover from DDB method to SL method is Rs.1300000 (i.e. sum of values in 4th column of Table 3.6) as desired whereas the total depreciation amount without switchover is Rs.1338938.73 (sum of values in 2nd column of Table 3.6).