Depreciation method

[tinabradford]

Hi, I need advice for depreciation method problem, I want use depreciation method type flat, i still confuse which calculation basis and depreciable basis rule that I want choose.

Example:
Asset cost = 732.764
salvage value = 1
rate = 12,5%

1st year
Depreciation Expense = 732.764*0.125 = 91.596
Accumulated Depreciation = 91.596

2nd year
Depreciation Expense = (732.764-91.596)*0.125 = 80.146
Accumulated Depreciation = 91.596+80.146 = 171.742

[tinabradford]

3rd year
Depreciation expense = (732.764-171.742)*0,125 = 70127.75
Accumulated depreciation = 171.742+70127,75 = 241869.75

[oteixeira]

Hello.

If you want period depreciation to be flat you should check the Amortize NBV over Remaining Life checkbox.

Octavio

[SRINIBAS]

YOUR METHOD IS FLAT RATE RIGHT.BUT THERE ARE TWO OPTION WHETHER U WANT STRAIGHT LINE OR DIMINISHING BALANCE METHOD.ACCORDING TO THIS THE CALCULATION BASIS WILL CHANGE