Asset Life Extension for STL - Asset life in decimal
My client would like to apply an extended life to assets with the following rules:
Asset Cost = 10000 Placed in service 01/01/2013 and monthly depreciated.
Life = 10 years
Depreciate method = STL (Straight Line)
In August 2017, the client decide to extend the life of asset to 15 years and to apply this extension from the beginning of the year i.e. 01/01/2017.
Years Deprec. NBV Years Deprec NBV
Expen. Expen.
2013 Year 1 1000 9000 Year 1 667 9333
2014 Year 2 1000 8000 Year 2 667 8666
2015 Year 3 1000 7000 Year 3 667 7999
2016 Year 4 1000 6000 Year 4 667 7332
2017 Year 5 1000 5000 Year 5 667 6665
Year 6 1000 4000 Year 6 667 5998
Year 7 1000 3000 Year 7 667 5331
Year 8 1000 2000 Year 8 667 4664
Year 9 1000 1000 Year 9 667 3997
Year 10 1000 0 Year 10 667 3330
Year 11 667 2663
Year 12 667 1996
Year 13 667 1329
Year 14 667 662
Year 15 667 -5
The life extension is applied on the Net Book Value at the end of year 4 = 6000.