building 190,000 estimated life 40yrs residual value 8,000 need amortization for 3 months do I divide or mulitipy. Thanks

First you take the cost of the building less the residual value(salvage value) to get the depreciable base, then take this number and divide it by 40 years to ge the depreciation per year. To get 3 months of depreciation take your depreciaiton per year and times it by 3(number of months/12(to get yearly rate to a montly rate) to get your answer.

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Originally Posted by pready

First you take the cost of the building less the residual value(salvage value) to get the depreciable base, then take this number and divide it by 40 years to ge the depreciation per year. To get 3 months of depreciation take your depreciaiton per year and times it by 3(number of months/12(to get yearly rate to a montly rate) to get your answer.

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Thanks