percentage depreciation method
percentage depreciation method
This method uses a yearly percentage to calculate depreciation which is not compounding. An appreciation percentage of 10% means a $100 item is worth $110 after one year.
Current Depreciation = - (Cost Purchase *
(Appreciation Percent / 100 ) ) / 12
Accumulated Depreciation = Months Between
Date Received and Report * Current
Depreciation
Current Value =
Cost Purchase - Accumulated Depreciation
Notice that the formula includes a negative ( - ) because it calculates appreciation and a negative depreciation amount indicates appreciation. The formula's Appreciation Percent is the value stored in the Depreciation Period or Appreciation % field of the Depreciation Property Types table.