unplanned depreciation in the first period
There is one asset in use on this month, and cost is 10000, I input the unplanned depreciation is 3000 on this month, so the NBV is 7000.
And I use the flat rate depreciation method for this asset, 20% on NBV,
When I run the depreciation of this month, the result of this is 2000=10000 *20%, is it right?
I think this should be 7000 * 20% = 1400. My deprecition method is based on the NBV , so why this is based on the cost instead of NBV ?
Hoping for your reply
Thanks