Depreciation Calculation Example 6
Asset acquired in middle of purchase year (which falls in middle of fiscal year) using Date of Purchase basis. Date of Purchase method based on Periods.
System-Wide Configuration: Spread "Catch-Up" among Remaining Periods in Purchase Year
| "Date of Purchase" Config: | Current Pd Depreciation Based on # Pds in Purchase Year (12) |
| FY: | Calendar Year (January to December) |
| New Asset: | Acquired July 2000 |
| Current FY/Pd: | FY: 2000 Pd: 7 |
| Depr Yr/Pds Remaining: | Depr Yr:1 Pds Remaining: 12 (at time of initialization) |
| Cost: | $ 12,000 |
| Depr Method: | S/L 5 (20% each year),.Date of Purchase Basis |
| Annual Depr: | (Years 1 to 5) 12,000 * 20% = 2,400 |
Basic Formula
| Annual Depr - Purchase YTD Depr
____________________________ # Pds Remaining in Purchase Year |
= Current Pd Depreciation | ||
|---|---|---|---|
| FY00 Pd 7: (Purchase Yr 1, Pd 1) | (2,400 - 0)
12 |
= | 200.00 |
| FY00 Pd8: (Purchase Yr 1, Pd 2) | (2,400 - 200)
11 |
= | 200.00 |
| FY00 Pd9: (Purchase Yr 1, Pd 3) | (2,400 - 400)
10 |
= | 200.00 |
| FY00 Pd10: (Purchase Yr 1, Pd 4) | (2,400 - 600)
9 |
= | 200.00 |
| FY00 Pd11: (Purchase Yr 1, Pd5) | (2,400 - 800)
8 |
= | 200.00 |
| FY00 Pd12: (Purchase Yr 1, Pd 6) | (2,400 - 1000)
7 |
= | 200.00 |
Note: After sixth period in purchase year, purchase year crosses fiscal years.
| Annual Depr - Purchase YTD Depr
____________________________ # Pds Remaining in Purchase Year |
= Current Pd Depreciation | ||
|---|---|---|---|
| FY01 Pd 1: (Purchase Yr 1, Pd 7) | (2,400 - 1200)
6 |
= | 200.00 |
| FY01 Pd 2: (Purchase Yr 1, Pd 8) | (2,400 - 1400)
5 |
= | 200.00 |
| FY01 Pd3: (Purchase Yr 1, Pd 9) | (2,400 - 1600)
4 |
= | 200.00 |
| FY01 Pd4: (Purchase Yr 1, Pd 10) | (2,400 - 1800)
3 |
= | 200.00 |
| FY01 Pd5: (Purchase Yr 1, Pd 11) | (2,400 - 2000)
2 |
= | 200.00 |
| FY01 Pd6: (Purchase Yr 1, Pd 12) | (2,400 - 2200)
1 |
= | 200.00 |
End of Purchase Year 1 - Begin Purchase Year 2
| Annual Depr - Purchase YTD Depr
____________________________ # Pds Remaining in Purchase Year |
= Current Pd Depreciation | ||
|---|---|---|---|
| FY01 Pd7: (Purchase Yr 2, Pd 1) | (2,400 - 0)
12 |
= | 200.00 |