Capital Asset Depreciation

Depreciation is when you distribute the cost of a fixed asset over its useful life. Fixed assets are tangible (physical) assets held by an entity for the production or supply of goods and services, for rental to others, or for administrative purposes.

AMT supports the following types of depreciation:

• Straight Line

  The same depreciation is distributed over the entire useful life of the asset.

• Units of Activity

  The depreciation amount varies for each period in proportion to the change in the level of activity. Units of Activity depreciation calculates depreciation on the basis of expected output or usage.