Spain Declining Balance (Method 30)

For the example that follows, these assumptions apply:

• Actual Start Date: July 11, 1997.

• Modified Start Date: July 11, 1997.

• Cost: 10.000.000 ESP (without tax).

• Asset Life: 6.66 years (72 life periods).

This table shows the depreciation of an asset when using depreciation method 30:

Year	End of Year Date	Accumulated Depreciation	Depreciation Expense	Calculation
1997	December 31, 1997	-1.430.137	1.430.137	10.000.000 * 30 percent * (174 / 365) Days
1998	December 31, 1998	-2.570.959	2.570.959	(10.000.000 - 1.430.137 * 30 percent
1999	December 31, 1999	-1.799.671	1.799.671	(10.000.000 - 4.001.096) * 30 percent
2000	December 31, 2000	-1.259.770	1.259.770	(10.000.000 - 5.800.7670 * 30 percent
2001	December 31, 2001	-881.839	881.839	(10.000.000 - 7.060.537) * 30 percent
2002	December 31, 2002	-617.287	617.287	(10.000.000 - 7.942.376 * 30 percent
2003	December 31, 2003	-1.440.337	1.440.337	10.000.000 - 8.559.663

Note: Life year 7 automatically depreciates to remaining basis.

This table explains the requirements for method 30:

Requirement	Explanation
Asset life	The demonstration data includes a version of method 30 for an asset life of 72 life periods.
Balance adjustments	Year-end with annual depreciation Apportioned by period in the year, based on percent
Modified start date	The modified start date is the actual start date, next period date, or start of period.
Conventions	Disposal convention is the actual disposal date with the actual start date.
Life year rules	Life year 1 to 1 declining balance with initial year apportionment. Life year 2 to 6 declining balance. Life year 7 is remaining basis.
Calculations	Declining balance of 30 percent. Basis includes the salvage value.
Disposals	Method 30 has no disposal rules.