Fixed Assets - EBS (MOSC)

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Depreciation Method Question - Canada CCA Class 13

edited Mar 27, 2018 9:13PM in Fixed Assets - EBS (MOSC) 6 commentsAnswered

Hello!  I am looking to set up a leasehold improvement asset that I need to set up a depreciation schedule to calculate straight line, but the first year is 50% of what a normal year straight line depreciation would be, and the final year is 150% (or remainder).  An example is below:

A leasehold improvement of $9,000 is made in 2018. The amortization period is 9 years, which
is the number of years remaining in the lease.

First year (2018):
$9,000 ÷ 9= $1,000 * 50% = $500 depreciation (half year rule)

Second year and following (2019 to 2025):
$1,000 depreciation

Last year of amortization period
(2026):
$1,000 × 150% = $1,500 depreciation

I appreciate any guidance that you all can provide -- thank you!!

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