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There are numerous accelerated plans -This one is -DECLINING BALANCE

• Example. No salvage value used in this example, $100,000 over 5 years
• 5+4+3+2+1 =15
• Year 1 5/15 X $100,000
• Year 2 4/15 X $100,000
• Year 3 3/15 X $100,000
• Year 4 2/15 X $100,000
• Year 5 1/15 X $100,000

DECLINING BALANCE $200,000 piece of machinery with an expected 4 year depreciation with $40,000 salvage value

				Original value
				Less Salvage -40,000
				Amount to depreciate
YEAR	RATE OF DEPRECIATION	THIS YEARS DEPRECIATED AMOUNT	ACCUMULATED	BOOK VALUE
Year 1
Year 2
Year 3
Year 4
Totals
			+ Salvage value if any
			Value at end of year 5

UNITS OF ACTIVITY

• Units of Activity $120,000 piece of machinery with an expected 6 year depreciation with no salvage value. Expected rate of usage Year 1- 20%, year 2-25%, Year 3 20%, Year 4 15%, year 5 10% -- year 6 10%

				Original value
				Less Salvage
				Amount to Depreciate
YEAR	RATE OF DEPRECIATION	THIS YEARS DEPRECIATED AMOUNT	ACCUMULATED	BOOK VALUE
Year 1	20%
Year 2
Year 3
Year 4
Year 5
Year 6
			+ Salvage value if any	+ 0
			Value at end of year 5	$