A machine costing 120,000, with no residual value, is depreciated on a straight-line basis over 10 years. At the start of the fifth year, after 4 years of use, a technical review concludes that the machine will only be usable for a further 3 years. What annual charge should be recognised from this year onwards?
- Cost
- 120,000
- Original useful life
- 10
- Years already elapsed
- 4
- Revised remaining useful life
- 3