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Composite depreciation

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Composite depreciation
Method of depreciation where a single average depreciation rate is applied to a group of dissimilar assets with different service lives. See also Group depreciation.


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6 million in additional annual depreciation expense) and approves new composite depreciation rates based on a recently completed depreciation study ($12.
Background The present law composite depreciation life of 27.
There are several options: (1) keep the current rules, (2) assign components, including original construction components, separate lives that are set to equal economic depreciation on the composite, and (3) provide a composite depreciation for a building, but allow component depreciation for future modifications.
 
 
 
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