Depreciation Method Question - Canada CCA Class 13
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!!