Depreciation in Minute Menu

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  • aemcclane
    Daycare.com Member
    • Jan 2014
    • 18

    Depreciation in Minute Menu

    We recently purchased a brand new mattress and I'm entering the expense into Minute Menu. I know it needs to be a half year convention but it's asking if I want to do 7 year straight line or 7 year 200% decline. Help!! The last option is confusing and google hasn't helped ! :confused:
  • TomCopeland
    Business Author/Trainer
    • Jun 2010
    • 3062

    #2
    depreciation

    Originally posted by aemcclane
    We recently purchased a brand new mattress and I'm entering the expense into Minute Menu. I know it needs to be a half year convention but it's asking if I want to do 7 year straight line or 7 year 200% decline. Help!! The last option is confusing and google hasn't helped ! :confused:
    Yes, depreciation is very confusing. Use 200% declining balance rather than straight line. Straight line depreciation means you claim the same amount of deductions each year. Declining balance depreciation means you claim more deductions in the early years a less in the later years. I'd always use the declining balance method.
    http://www.tomcopelandblog.com

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    • aemcclane
      Daycare.com Member
      • Jan 2014
      • 18

      #3
      Thank you!

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