KEVOS® MAKEOS · Money
Depreciation Schedule
How does this asset depreciate each year by straight-line, sum-of-years’-digits or declining balance?
Year-by-year depreciation and book value of an asset by straight-line, sum-of-the-years’-digits or double-declining-balance methods.
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How this tool works
Inputs, units and where to find them
| Input | Unit | Typical source |
|---|---|---|
| Asset cost | AUD | Installed cost of the asset. |
| Salvage value | AUD | Expected value at the end of its life. |
| Useful life | years | Useful (or effective) life in years. |
| Method | choice | Method to schedule; tax depreciation must follow the tax authority’s rules (in Australia, ATO effective life and methods). |
Method and formulas
- Straight line: D = (cost − salvage) ÷ life.
- Sum of digits: D_t = (cost − salvage) × (life − t + 1) ÷ (life(life + 1) ÷ 2).
- Double declining: D_t = 2 ÷ life × opening book value, not taken below salvage.
- Example: $18,000 in year 1 by the selected method, leaving $10,000 at the end.
Limitations
- Accounting illustration; tax depreciation rules differ by country and asset class.
- Declining balance does not reach salvage exactly unless a switch to straight line is made.
- Example values are illustrations. Replace them with values for your actual task.
Typical uses
- Compare depreciation methods for an equipment purchase
- Estimate book value at disposal
- Build cash-flow tables for a business case
Who it is for
- Engineering managers
- Project engineers
- Finance and business analysts
What you get
- Depreciation each year
- Book value each year
- First-year depreciation
Interpreting the result
- Use the method your accountant or tax authority requires for reporting.
References
- Machinery’s Handbook, 29th edition (Industrial Press, 2012), printed pp. 139–140. Topic reference; no source tables or recommended settings are reproduced.
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