Fixed asset depreciation
Straight-line, declining balance, accelerated and units-of-production — NAS 7
Method
| Year | Charge | Monthly | Book value |
|---|---|---|---|
| 1 | 21,600 | 1,800 | 98,400 |
| 2 | 21,600 | 1,800 | 76,800 |
| 3 | 21,600 | 1,800 | 55,200 |
| 4 | 21,600 | 1,800 | 33,600 |
| 5 | 21,600 | 1,800 | 12,000 |
Depreciable base = initial − residual. Declining balance rate = 1 − (residual/initial)^(1/years). Production method allocates by actual output.