Depreciation That Lands Where the Policy Says ASSETS
A policy says reduce to a thousand over five years. Somebody picks 25% because it sounds right. Five years later the books say 2,373, and nobody can see why.
The years
The convention decides which year takes the charge for an asset bought in October. It is a real choice with a real effect on this year’s profit, so the schedule changes under you when you switch it.
The assets
What it isCostResidualBoughtMethodYears
Leave the reducing balance rate blank and it is solved from the cost, the residual and the life, which is the only way the last year lands on the residual.
The register
Year by year, asset by asset
Questions people ask about ASSETS
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