A change from an impermissible method of determining depreciation for depreciable property, if the impermissible method was used in two or more consecutively filed tax returns. This is one of the two common methods a company uses to account for the expenses of a fixed asset. There are two main depreciation methods: book and tax. It is acceptable and common for companies to depreciate its plant assets by using the straight line method on its financial statements, while using an accelerated method on its income tax return. Several depreciation methods exist, with various advantages and disadvantages associated with each. It is based on the principle that each accounting period of the asset's life should bear an equal amount of depreciation. a. This method uses a factor of two, when determining how much is written off each year. A change in the treatment of an asset from nondepreciable to depreciable or vice versa. Yes, many companies use two or more methods of depreciation. Determine the depreciation for each of the first two years by the straight-line method. Other Methods of Depreciation. This is an accelerated depreciation method. An appraiser could estimate accrued depreciation attributed to two of the sources by other appropriate methods, and then subtract the amount of accrued depreciation â¦ More complicated than the first two depreciation methods, sum-of-the-years depreciation adds the sum of the useful life of the asset. Straight Line The straight line method involves determining the cost to depreciate and dividing that amount by the number of years the company expects to use the asset. The formula is: Depreciation by Two Methods. 3) Double declining method. As the name suggests, it counts expense twice as much as the book value of the asset every year. A computer system acquired on January 1 at a cost of $261,000 has an estimated useful life of ten years. 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