There are still Net book Value even after expired Useful Life which needs to be written off
At the end of the last useful life all the net book value should be written off. In a 4 years of useful life example of 1000TL acquisition value, 1st year end depreciation expense will be 500, 2nd year will be 250, 3rd year will be 125, 4th and last year will be 125 as well.
For this, we are using a Double decling method and the configuration as Z follows:-
Base method is 0007
Multi-level method has been defined with only 1 Phase. ( Acq year 9999 ; Year 999; Period 12; Base value 24)
Period Control :- from starting of the Year(06)
Declining method:- 2.00X/ 0.00% /0.00%
Change Over Method:- No automatic Changeover
Multiple Shift :- increase in dep and exp useful life
Scrap Value:- Consideration is controlled bu Cutoffkey Key
We get, 1st year end depreciation expense as 500, 2nd year will be 250, 3rd year will be 125, But in the Last year, we get the dep exp amount as 62.5 But,what we want is that the last year depreciation should be equal to NBV of the last palnned useful life ie., 125/- and the NBV should become zero at the end of the useful life.
Can some one Guide as how this can be achieved.