150DB and 200DB Depreciation Method
These are standard Modified Accelerated Cost Recovery System (MACRS) methods defined for U.S. tax purposes.
Both methods use two calculations and applies the one with the higher value. The results in faster depreciation early in the asset's life. About one-third of the way through (for 150 DB), the system switches to the second method, transitioning from a curve depreciation pattern to a straight line method.
The formula for the 150DB method is:
((NB-RV)*(1.5/AL))~((NB-RV)/(AL-CP+1))
200DB is the same basic formula but will depreciate faster before switching to straight line:
((NB-RV)*(2/AL))~((NB-RV)/(AL-CP+1))
Related Topics
- Preconfigured Depreciation Methods
- Nordic Countries and Benelux Methods
- Japan Depreciation Methods
- Asset Usage (Asset Activity) Depreciation Method
- Fixed Declining (Declining Balance) Depreciation Method
- Straight Line Depreciation Method
- Sum of Years' Digits Depreciation Method
- Straight Line Remaining Depreciation Method
- Sum of Years/Straight Line Depreciation Method
- 4–4–5 Calendar Depreciation Method