HP 20b Consultant Financial manual Acrs

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Depreciation

Table 8-1Depreciation Methods

Depreciation

Description

Method

 

 

 

DecBal

Declining balance is an accelerated depreciation method

 

 

that presumes an asset will lose the majority of its value

 

during the first few years of its useful life.

 

 

DBXover

Declining balance crossover is an accelerated

 

 

depreciation method that presumes an asset will lose the

 

majority of its value in the first few years of its useful life,

 

but that it will revert to a consistent depreciation during the

 

latter part of its life, which is then calculated using the

 

straight line method.

 

 

ACRS

Accelerated Cost Recovery System calculates the amount

 

 

of tax deduction under U.S. Accelerated Cost Recovery

 

System.

 

 

Sl Fr

Straight line French. This method of depreciation is similar

 

 

to the Straight line method, except an actual calendar date

 

in mm.dd format is entered in for Start= to indicate when

 

the asset was first placed into service.

 

 

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HP 20b Consultant Financial manual Acrs