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