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Former Member
Feb 09, 2012 at 07:55 PM

Change depreciation tax/year

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Hello friends.

If I change the rate of depreciation of a asset from 4 years/25% to 5 years/20%, how is the depreciation accounting in next year?

As I see, actualy we have the depreciation as example below:

Suppose the assets was acquired by 10,000 in 01-Jan-2010.

In 2010, the annual amount of depreciation was 2,500 and 7,500 residual.

In 2011, the annual amount of depreciation was 2,500 and 5,000 residual.

In 2012, we need to change the annual amount of depreciation from 4 years/25% to 5 years/20%.

Our client expect that the Depreciation tax changed to 20% like example below:

In 2012, the annual amount of depreciation should be 2,000 and residual 3,000.

In 2013, the annual amount of depreciation should be 2,000 and residual 1,000.

In 2014, the annual amount of depreciation should be 1,000 .00 (only 6 months).

Can I do the system works like this?

Thanks in advanced.

GLippmann