Numerical example: Total balance 31/12/2014 $400,000 Assets added during 2015 $100,000 Assets added during 2016 $80,000 Assets sold during 2015 $20,000 Assets sold during 2016 $40,000 Depreciation rate %10 Calculate the depreciation for years 2015 and 2016 Year 2015 50,000 (10,000) 440,000 (44,000) 396,000 Fol Add: % 50 of assets added during 2015 and 2016 90,000 Deduct: % 50 of assets sold during 2015 and 2016 (30,000) Net book value (depreciable balance) 456,000 Annual depreciation (rate 10%) (45,600) Balance of group in 31/12/2016 410,400