Let’s say we buy asset at 100, and we are going to sell it at 10 at the end of 3 years. So the salvage value is 90. Do we use the MACRS spreadsheet to calculate depreciation on 100 or do we use it on 90? Thanks in advance.

I don’t know if your numbers in the first sentence make sense. But from what I’ve always understood is depreciation is calculated from the historical/original price paid.

Salvage would be 10. MACRS is calculated off the purchase price (100 in your example). If you were using straight line, it would be off 90 (price net of salvage)

ShintreH ,salvage price is 10 in your example , not 90

I don’t think L2 cares much about depreciation methods.

Thanks for the replies, regarding the first statement, I meant 90 is diff between salvage and purchase value.

i know what your asking, it’s based off the initial price (100), you dont recalc it off current net book like you would the other dep methods.