Could someone share knowledge about residual value rate setting for specific depreciation method?
We expect different residual value rate based on base value in different depreciation method.
Best answer by Ieva Rituma
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Userlevel 6
+16
There are 2 options for this:
- The value of the asset is depreciated to 70% of the value, split evenly throughout the life of the asset
- E.g. value: 120; depreciated over one year; 30% residual value – means that monthly depreciation is 7 (120*0.7/12).
- The value of the asset is depreciated to 70% of the life, meaning that the last 30% of the life in terms of time is not depreciated.
- E.g. value: 120; depreciated over one year; 30% residual value – means that monthly depreciation is 10 (120/12), but the last 3.6 months there is no depreciation (12*0.3)
+3
Hi Ieva,
Thanks for your quick response, we will have testing on your solution.
Thanks,
Semon
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