Depreciation Convention

FA-197 - Getting issue details... STATUS

FA-155 - Getting issue details... STATUS

FA-205 - Getting issue details... STATUS

Given Data:

Depreciation Type : Mid-Month

Duration : 2 years

Year 1 : 50%

Year 2 : 50%

Asset Cost : 360

Salvage Value : 240

Basis : 360 - 240 = 120

Monthly Depreciation Formula

Basis * Year Percentage / Number of Months in a year

Year #	Month #	Date	Transaction	Computation		Depreciation To Date
1	1	12/31/2020	Place in service			0.00
1	1	12/31/2020	Depreciation	120 * .5 /12	5.00	5.00
1	2	01/31/2021	Depreciation	120 * .5 /12	5.00	10.00
1	3	02/28/2021	Depreciation	120 * .5 /12	5.00	15.00
1	4	03/31/2021	Depreciation	120 * .5 /12	5.00	20.00
1	5	04/30/2021	Depreciation	120 * .5 /12	5.00	25.00
1	6	05/31/2021	Depreciation	120 * .5 /12	5.00	30.00
1	7	06/30/2021	Depreciation	120 * .5 /12	5.00	35.00
1	8	07/31/2021	Depreciation	120 * .5 /12	5.00	40.00
1	9	08/31/2021	Depreciation	120 * .5 /12	5.00	45.00
1	10	09/30/2021	Depreciation	120 * .5 /12	5.00	50.00
1	11	10/31/2021	Depreciation	120 * .5 /12	5.00	55.00
1	12	11/30/2021	Depreciation	120 * .5 /12	5.00	60.00
2	1	12/31/2021	Depreciation	120 * .5 /12	5.00	65.00
2	2	01/31/2022	Depreciation	120 * .5 /12	5.00	70.00
2	3	02/28/2022	Depreciation	120 * .5 /12	5.00	75.00
2	4	03/31/2022	Depreciation	120 * .5 /12	5.00	80.00
2	5	04/30/2022	Depreciation	120 * .5 /12	5.00	85.00
2	6	05/31/2022	Depreciation	120 * .5 /12	5.00	90.00
2	7	06/30/2022	Depreciation	120 * .5 /12	5.00	95.00
2	8	07/31/2022	Depreciation	120 * .5 /12	5.00	100.00
2	9	08/31/2022	Depreciation	120 * .5 /12	5.00	105.00
2	10	09/30/2022	Depreciation	120 * .5 /12	5.00	110.00
2	11	10/31/2022	Depreciation	120 * .5 /12	0	115.00
2	12	11/30/2022	Depreciation	120 * .5 /12	1	120.00

This is marked as Fully Depreciated when Total Months = Depreciated Months

Given Data:

Depreciation Type : Mid-Month

Duration : 2 years

Year 1 : 50%

Year 2 : 50%

Asset Cost : 360

Salvage Value : 240

Basis : 360 - 240 = 120

First and Last Monthly Formula

Basis * Year Percentage / Number of Months in a year / 2

Remaining Monthly Formula

Basis * Year Percentage / Number of Months in a year

Year #	Month #	Date	Transaction	Computation	Depreciated Value	Depreciation To Date
1	1	12/31/2020	Place in service	0	0	0.00
1	1	12/31/2020	Depreciation	120 * .5 / 12 / 2	2.5	2.50
1	2	01/31/2021	Depreciation	120 * .5 / 12	5	7.50
1	3	02/28/2021	Depreciation	120 * .5 / 12	5	12.50
1	4	03/31/2021	Depreciation	120 * .5 / 12	5	17.50
1	5	04/30/2021	Depreciation	120 * .5 / 12	5	22.50
1	6	05/31/2021	Depreciation	120 * .5 / 12	5	27.50
1	7	06/30/2021	Depreciation	120 * .5 / 12	5	32.50
1	8	07/31/2021	Depreciation	120 * .5 / 12	5	37.50
1	9	08/31/2021	Depreciation	120 * .5 / 12	5	42.50
1	10	09/30/2021	Depreciation	120 * .5 / 12	5	47.50
1	11	10/31/2021	Depreciation	120 * .5 / 12	5	52.50
1	12	11/30/2021	Depreciation	120 * .5 / 12	5	57.50
2	1	12/31/2021	Depreciation	120 * .5 / 12	5	62.50
2	2	01/31/2022	Depreciation	120 * .5 / 12	5	67.50
2	3	02/28/2022	Depreciation	120 * .5 / 12	5	72.50
2	4	03/31/2022	Depreciation	120 * .5 / 12	5	77.50
2	5	04/30/2022	Depreciation	120 * .5 / 12	5	82.50
2	6	05/31/2022	Depreciation	120 * .5 / 12	5	87.50
2	7	06/30/2022	Depreciation	120 * .5 / 12	5	92.50
2	8	07/31/2022	Depreciation	120 * .5 / 12	5	97.50
2	9	08/31/2022	Depreciation	120 * .5 / 12	5	102.50
2	10	09/30/2022	Depreciation	120 * .5 / 12	5	107.50
2	11	10/31/2022	Depreciation	120 * .5 / 12	5	112.50
2	12	11/30/2022	Depreciation	120 * .5 / 12	5	117.50
3	1 (excess month for mid month)	12/31/2022	Depreciation	120 * .5 / 12 / 2	2.5	120.00

This is marked as Fully Depreciated when Total Months < Depreciated Months

Given Data:

Depreciation Type : Actual Days

Placed of Service: 16 Nov 2020

Duration : 2 years

Year 1 : 50%

Year 2 : 50%

Asset Cost : 360

Salvage Value : 240

Basis : 360 - 240 = 120

First Month no. of days : 30

Day of Place of service : 16

First Month Formula

Basis * Year Percentage / Number of Months in a year * (Remaining Day/Days in First Month)

Remaining Day = FIrst Month no. of days - Day of Place of Service + 1

Last Month Formula

Basis * Year Percentage / Number of Months in a year * (Remaining Day/Days in First Month)

Remaining Day = 16 - 1

Remaining Day = Day of Place of Service - 1

Remaining Monthly Formula

Basis * Year Percentage / Number of Months in a year

Year #	Month #	Date	Transaction		Depreciated Value	Depreciation To Date
1	1	11/16/2020	Place in service			0.00
1	1	11/30/2020	Depreciation	120 .5 / 12 (30 - 16 + 1 )/30	2.50	2.50
1	2	12/31/2020	Depreciation	120 *.5 / 12	5.00	7.50
1	3	01/31/2021	Depreciation	120 *.5 / 12	5.00	12.50
1	4	02/28/2021	Depreciation	120 *.5 / 12	5.00	17.50
1	5	03/31/2021	Depreciation	120 *.5 / 12	5.00	22.50
1	6	04/30/2021	Depreciation	120 *.5 / 12	5.00	27.50
1	7	05/31/2021	Depreciation	120 *.5 / 12	5.00	32.50
1	8	06/30/2021	Depreciation	120 *.5 / 12	5.00	37.50
1	9	07/31/2021	Depreciation	120 *.5 / 12	5.00	42.50
1	10	08/31/2021	Depreciation	120 *.5 / 12	5.00	47.50
1	11	09/30/2021	Depreciation	120 *.5 / 12	5.00	52.50
1	12	10/31/2021	Depreciation	120 *.5 / 12	5.00	57.50
2	1	11/30/2021	Depreciation	120 *.5 / 12	5.00	62.50
2	2	12/31/2021	Depreciation	120 *.5 / 12	5.00	67.50
2	3	01/31/2022	Depreciation	120 *.5 / 12	5.00	72.50
2	4	02/28/2022	Depreciation	120 *.5 / 12	5.00	77.50
2	5	03/31/2022	Depreciation	120 *.5 / 12	5.00	82.50
2	6	04/30/2022	Depreciation	120 *.5 / 12	5.00	87.50
2	7	05/31/2022	Depreciation	120 *.5 / 12	5.00	92.50
2	8	06/30/2022	Depreciation	120 *.5 / 12	5.00	97.50
2	9	07/31/2022	Depreciation	120 *.5 / 12	5.00	102.50
2	10	08/31/2022	Depreciation	120 *.5 / 12	5.00	107.50
2	11	09/30/2022	Depreciation	120 *.5 / 12	5.00	112.50
2	12	10/31/2022	Depreciation	120 *.5 / 12	5.00	117.50
3	1 (excess month for actual days)	11/30/2022	Depreciation	120 .5 /12 (16 - 1 )/30	2.50	120.00

This is marked as Fully Depreciated when Total Months < Depreciated Months

Given Data:

Depreciation Type : Mid-Month

Duration : 2 years

Year 1 : 50%

Year 2 : 50%

Asset Cost : 360

Salvage Value : 240

Basis : 360 - 240 = 120

Imported : Yes

Placed in Service: 12/31/2020

Imported Depreciation thru:12/31/2021

Depreciation to date GAAP: 75

Entry on "Create asset" being clicked

Account	DR	CR
Asset	360
Accumulated Depr		75
Offset Account		285

Monthly Depreciation Formula

Basis * Year Percentage / Number of Months in a year

Year #	Month #	Date	Transaction	Computation		Depreciation To Date
1	1	12/31/2020	Place in service			0.00
1	1	12/31/2020	Depreciation	0	0	0
1	2	01/31/2021	Depreciation	0	0	0
1	3	02/28/2021	Depreciation	0	0	0
1	4	03/31/2021	Depreciation	0	0	0
1	5	04/30/2021	Depreciation	0	0	0
1	6	05/31/2021	Depreciation	0	0	0
1	7	06/30/2021	Depreciation	0	0	0
1	8	07/31/2021	Depreciation	0	0	0
1	9	08/31/2021	Depreciation	0	0	0
1	10	09/30/2021	Depreciation	0	0	0
1	11	10/31/2021	Depreciation	0	0	0
1	12	11/30/2021	Depreciation	0	0	0
2	1	12/31/2021	Depreciation	0	0	0
2	2	01/31/2022	Depreciation	120 * .5 /12	5.00	80.00 (75.00+5.00)
2	3	02/28/2022	Depreciation	120 * .5 /12	5.00	85.00
2	4	03/31/2022	Depreciation	120 * .5 /12	5.00	90.00
2	5	04/30/2022	Depreciation	120 * .5 /12	5.00	95.00
2	6	05/31/2022	Depreciation	120 * .5 /12	5.00	100.00
2	7	06/30/2022	Depreciation	120 * .5 /12	5.00	105.00
2	8	07/31/2022	Depreciation	120 * .5 /12	5.00	110.00
2	9	08/31/2022	Depreciation	120 * .5 /12	5.00	115.00
2	10	09/30/2022	Depreciation	120 * .5 /12	5.00	120.00
2	11	10/31/2022	Depreciation	120 * .5 /12	0	120.0.00 (Reached Max dep due to imported value
2	12	11/30/2022	Depreciation	120 * .5 /12	0	120.00

This is marked as Fully Depreciated when Depreciate To Date Amount >= Basis Amount

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Depreciation Convention