Depreciation Calculation Example 7

Asset was acquired 10 periods into fiscal year using Date of Purchase basis. Date of Purchase method based on Periods. Asset was entered three periods "late" (after purchase) with "Catch-Up" depreciation applied in current period.

System-Wide Configuration: "Catch-Up' in Current Period

"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
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
Current FY/Pd:	FY: 2000 Pd: 10
Depr Yr/Pds Remaining:	Depr Yr:1 Pds Remaining: 9 (at time of initialization)

Basic Formula

(Including Curr Pd) (# Pds PYTD * Annual Deprec) - PYTD Depreciation ____________________________________________ # Pds in PY (Including Curr Pd)	= Current Pd Depreciation

User Misses First Three Periods in Purchase Year

(Including Curr Pd) (# Pds PYTD * Annual Deprec) - PYTD Depreciation ____________________________________________ # Pds in PY (Including Curr Pd)			= Current Pd Depreciation
FY00 Pd 10 (PY1, Pd 1,2,3,4)	[(4/12) * 2400]	- 0.00	=	800.00
FY00 Pd 11 (PY1, Pd 5)	[(5/12) * 2400]	- 800.00	=	200.00
FY00 Pd 12 (PY1, Pd 6)	[(6/12) * 2400]	- 1000.00	=	200.00

After the sixth period in purchase year, purchase year crosses fiscal year.

(Including Curr Pd) (# Pds PYTD * Annual Deprec) - PYTD Depreciation ____________________________________________ # Pds in PY (Including Curr Pd)			= Current Pd Depreciation
FY01 Pd 1 (PY1, Pd 7)	[(7/12) * 2400]	- 1200.00	=	200.00
FY01 Pd 2 (PY1, Pd 8)	[(8/12) * 2400]	- 1400.00	=	200.00
FY01 Pd 3 (PY1, Pd 9)	[(9/12) * 2400]	- 1600.00	=	200.00