Depreciation Method with different Depreciation Rates for different year
Summary:
Want to create a depreciation method that can depreciate the asset for different rate in the asset useful life i.e. an asset with 5 years useful life to depreciate as below,
1 Yr-> depreciate 60% of the cost
2 Yr-> depreciate 20% of the NBV at 2nd year beginning
3 Yr-> depreciate 20% of the NBV at 3rd year beginning
4 Yr-> depreciate 20% of the NBV at 4th year beginning
5 Yr-> depreciate 20% of the NBV at 5th year beginning
Meanwhile, the remaining book value could keep it as it is.
For example if the asset has a cost at $1000 for 5 years useful life, its' depreciation expense should be $600 for the 1st year, $80 for the second year, $64 for the third year, $51.2 for the fourth year and $40.96 for the fifth year.
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