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.
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How to setup residual value rate or value in depreciation method
+3Best answer by Ieva Rituma
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)
+16There 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)
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