Calculation behind STL 50B depreciation method for tax books
Hi,
Has anyone tried to understand the calculation behind the dep method STL 50B ? It is for 3 years.
I understand that the change in the rates for Year 1 and last year (year 4) are with the intention to accommodate the depreciation for the few months in first year(e.g. if the asset is added in Sep-09 then it should depreciate for 3 months in 2009). Similarly it takes care of the depreciation in last year (3 extra months in Year 4).
Can anyone explain the mathematical basis how the last and first year's rates are computed(shown below) ?
Has anyone tried to understand the calculation behind the dep method STL 50B ? It is for 3 years.
I understand that the change in the rates for Year 1 and last year (year 4) are with the intention to accommodate the depreciation for the few months in first year(e.g. if the asset is added in Sep-09 then it should depreciate for 3 months in 2009). Similarly it takes care of the depreciation in last year (3 extra months in Year 4).
Can anyone explain the mathematical basis how the last and first year's rates are computed(shown below) ?
| Cost | 50% Bonus | Total months | Year 1 | Year 2 |
0