150% declining
depreciation, as the
name implies, is an
accelerated depreciation
method. Using this
method the Book Value
(cost of asset less
accumulated
depreciation) at the
beginning of each period
is multiplied by a fixed
Depreciation Rate which
is 150% of the straight
line depreciation rate.
The 150% declining
balance calculation
takes into consideration the salvage
value in the
depreciation, Typically
the last year of
depreciation adjusts to
the salvage value, or
book value (usually the
same amount). At the end
of the asset's life.
If the asset is bought
during the year,
multiple the full year
depreciation calculated
by the fraction of
months the asset is in
service. If an asset is
bought and placed in
service on August 1st,
the depreciation
calculated would be
multiplied by 5/12 -
future full years would
be calculated normally.
