Front-loaded write-downs.
A worked example
Starting figures
- Asset cost
- $24,000
- Useful life
- 6
- Factor
- 2
What it returns
- First-year write-down
- $8,000
- Rate
- 33.3%
- Year 1
- $8,000
- Year 2
- $5,333
- Year 3
- $3,556
- Year 4
- $2,370
- Year 5
- $1,580
How to read the results
With the defaults above, first-year write-down works out at $8,000.