Pinnacle allows you to use two different methods when depreciating your assets. The methods are Prime Cost (also called Straight Line), and Reducing Balance (also called Diminishing Value).
Using the Prime Cost method of depreciation, the depreciation rate for an asset can be calculated using the following formula:
Where n = Estimated life of asset in years
r = Estimated residual value of asset
c = Depreciable amount (cost)
Using the reducing Balance method of depreciation, the depreciation rate for an asset can be calculated using the following formula:
Where n = Estimated life of asset in years
r = Estimated residual value of asset
c = Depreciable amount (cost)