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Former Member
Nov 26, 2011 at 09:39 AM

Depreciation

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Dear All,

I have a problem with depreciation calculation.

Could you explain me which options should I use in Multilevel method for the following case.

1. Acquisition date : 10/2007 (Started depreciation from 11/2007), value 10,000$

2. Depreciation method : Straight-line depreciation.

3. Useful life : 4 year

4. Technical improvement : additional vale 10,000$(09/2011) , change useful life from 4 year -> 8 year

What I want to calculate

year . ...... . dep. value

2007Y ...... 417 (10,000$/4y/12m*2)

2008Y ...... 2,500 (10,000$/4y)

2009Y ...... 2,500 (10,000$/4y)

2010Y ...... 2,500 (10,000$/4y)

09/2011Y ...... 1,875 (10,000$/4y/12m*9)

10/2011Y ...... 638 ((208$ (NBV for 1st ACQ) + 10,000$) / 4Y / 12m*3)) -- Technical improvement

2012Y ...... 2552 ((208$ (NBV for 1st ACQ) + 10,000$) / 4Y)

2013Y ...... 2552 ((208$ (NBV for 1st ACQ) + 10,000$) / 4Y)

2014Y ...... 2552 ((208$ (NBV for 1st ACQ) + 10,000$) / 4Y)

2015Y ...... 1914

How many levels do I need for this case in multilevel method and what are the value for each level

(for example, Validity period in years, Validity period in months, Base value key, percent, rem.lif)

Thank you very much for you help in advance!