一Depreciable Assets set forth in Article 6, items (i) and (ii) (Scope of Depreciable Assets) (excluding those set forth in items (iii) and (vi)): the methods specified in the following for the respective categories set forth below;

イDepreciable Assets (excluding buildings) acquired on or before March 31, 2016: the following methods;

（１）The straight-line method (meaning a method of depreciating, as the depreciation allowance for each year, the amount calculated by multiplying the acquisition price of the Depreciable Asset by the depreciation rate corresponding to the useful life of that asset such that the depreciation allowance is the same every year (referred to as the "straight-line depreciation rate" in (2)); the same applies hereinafter in this Division and Division 3 (Calculation of Depreciation Allowances));

（２）The Declining-balance Method (meaning a method of depreciating, as the depreciation allowance for each year, the amount calculated by multiplying the acquisition price of the Depreciable Asset (in the case of depreciation from the second year on, the amount obtained by deducting from that acquisition price the amount already included as depreciation allowance in necessary expenses in calculating the amount of real property income, the amount of business income, the amount of timber income, or the amount of miscellaneous income for each year) by the depreciation rate corresponding to the useful life of that asset such that the depreciation allowance declines every year at the rate obtained by deducting from one the rate calculated by multiplying the straight-line depreciation rate by two (2.5 for Depreciable Assets acquired on or before March 31, 2012) (or, if the amount so calculated is less than the guaranteed depreciation amount, the amount calculated by multiplying the revised acquisition cost by the revised depreciation rate corresponding to the useful life of that asset such that the depreciation allowance is the same every year thereafter); the same applies hereinafter in this Division through Division 3);

ロDepreciable Assets other than the Depreciable Assets set forth in (a): the straight-line method;

二Depreciable Assets set forth in Article 6, items (iii) through (vii) (excluding those set forth in the following item and item (vi)): the following methods;

イThe straight-line method;

ロThe Declining-balance Method;

三Depreciable Assets for mining (excluding those set forth in items (v) and (vi)): the methods specified in the following for the respective categories set forth below;

イDepreciable Assets set forth in Article 6, items (i) and (ii) acquired on or after April 1, 2016: the following methods;

（１）The straight-line method;

（２）The Units-of-production Method (meaning a method of depreciating, as the depreciation allowance for that year, the amount calculated by multiplying the amount per fixed unit, calculated by dividing the acquisition price of the Depreciable Asset for mining by the planned extraction quantity of the mining area to which that asset belongs within the period of the useful life of that asset (if the planned extraction years of the mining area to which that asset belongs are shorter than that useful life, the planned extraction years of that mining area), by the quantity extracted from that mining area in each year; the same applies hereinafter in this Division and Division 3);

ロDepreciable Assets other than the Depreciable Assets set forth in (a): the following methods;

（１）The straight-line method;

（２）The Declining-balance Method;

（３）The Units-of-production Method;

四Intangible Fixed Assets set forth in Article 6, item (viii) (excluding those set forth in the following item and item (vi)) and living organisms set forth in item (ix) of that Article: the straight-line method;

五Mining rights and storage rights set forth in Article 6, item (viii), (a): the following methods;

イThe straight-line method;

ロThe units-of-production method, etc. (meaning a method of depreciating, as the depreciation allowance for that year, the amount calculated by multiplying the amount per fixed unit, calculated by dividing the acquisition price of the mining right or storage right by the planned extraction quantity or planned injection quantity of the mining area or storage area to which those assets belong within the period of the useful life of those assets (if the planned extraction years or planned injection years of the mining area or storage area to which those assets belong are shorter than that useful life, the planned extraction years or planned injection years of that mining area or storage area), by the quantity extracted or quantity injected in that mining area or storage area in each year; the same applies hereinafter in this Division and Division 3);

六Leased assets: the lease period straight-line method (meaning a method of depreciating, as the depreciation allowance for each year, the amount calculated by multiplying the amount calculated by dividing the acquisition price of that leased asset (if the acquisition price of a leased asset for which the contract pertaining to the lease transaction without transfer of ownership was concluded on or before March 31, 2027 includes an amount equivalent to the guaranteed residual value, the amount obtained by deducting that guaranteed residual value from that acquisition price) by the number of months of the lease term of that leased asset (if the transfer of that leased asset was received in the middle of the lease term for a reason other than the grounds set forth in the items of Article 60, paragraph (1) (Acquisition Costs of Assets Acquired as Gifts) of the Act, limited to the period on or after the date of that transfer) by the number of months of that lease term in that year; the same applies in Division 3).

一Guaranteed depreciation amount: the amount calculated by multiplying the acquisition price of a Depreciable Asset by the guarantee rate corresponding to the useful life of that asset;

二Revised acquisition cost: the amount specified in the following for the respective cases set forth below;

イIn the case where the amount calculated by multiplying the acquisition price prescribed in item (i), (a), (2) of the preceding paragraph of a Depreciable Asset by the depreciation rate corresponding to the useful life prescribed in (a), (2) of that item (hereinafter in this item referred to as the "pre-adjustment depreciation amount") is less than the guaranteed depreciation amount (limited to the case where the pre-adjustment depreciation amount in the year preceding that year is the guaranteed depreciation amount or more): that acquisition price of that Depreciable Asset;

ロIn the case where the pre-adjustment depreciation amount of a Depreciable Asset is less than the guaranteed depreciation amount in each of two or more consecutive years: the acquisition price prescribed in item (i), (a), (2) of the preceding paragraph in the earliest of those two or more consecutive years;

三Depreciable Assets for mining: the Depreciable Assets for mining prescribed in paragraph (2) of the preceding Article;

四Leased asset: a Depreciable Asset that is deemed to have been acquired by the lessee pertaining to a lease transaction without transfer of ownership;

五Lease transaction without transfer of ownership: a lease transaction prescribed in Article 67-2, paragraph (3) (Calculating Amounts of Income from Lease Arrangements) of the Act (hereinafter in this item and item (vii) referred to as a "lease transaction") other than one that falls under any of the following (including those equivalent to these);

イThat, at the end of the lease term or in the middle of the lease term, the asset that is the subject of that lease transaction as specified in the contract pertaining to that lease transaction (hereinafter in this item referred to as the "subject asset") is to be transferred to the lessee pertaining to that lease transaction free of charge or for a nominal amount of consideration;

ロThat the lessee pertaining to that lease transaction is given a right to purchase the subject asset at the end of the lease term or in the middle of the lease term, and that right is expected with certainty to be exercised because the right is to purchase the subject asset at a significantly advantageous price or for other circumstances;

ハThat, in light of the type, use, installation status, etc. of the subject asset, the subject asset is expected to be used during its usable period only by the lessee pertaining to that lease transaction, or the subject asset is found to be difficult to identify;

ニThat the lease term is considerably shorter than the useful life of the subject asset specified by Ministry of Finance Order prescribed in Article 129 (Useful Life, Depreciation Rates, etc. of Depreciable Assets) (limited to a case found to significantly reduce the income tax burden of the lessee pertaining to that lease transaction);

六Guaranteed residual value: the guaranteed amount specified in the contract pertaining to a lease transaction without transfer of ownership, in the case where, if the disposal value of the leased asset at the end of the lease term is less than that guaranteed amount, the lessee pertaining to that lease transaction without transfer of ownership is to pay the amount of the shortfall to the lessor;

七Lease term: the period of the lease of the leased asset specified in the contract pertaining to a lease transaction.