The balance method of Income Forecasting depreciation is calculated by taking the actual income "rent only" and dividing that by the item balance.  Then taking the result and multiplying that by the cost of the inventory item.

The flex method of Income Forecasting depreciation is calculated by taking the actual income "rent only" and dividing it by the original balance.  Then taking the result and multiplying that by the remaining book value at the beginning of the agreement.  (Note: What the item was worth when it was rented.)

The practice of taking six months' depreciation in the year of acquisition and in the year of disposition, rather than computing depreciation for partial periods to the nearest month.

A scale of depreciation calculation used when the aggregate total of assets acquired in that year exceed 40% in the 4th quarter.

The multiplier method of income forecasting depreciation calculates depreciation by taking the actual income (rent only) dividing that by the cost times the multiplier.  The result is then multiplied by the cost of the inventory item again.