Depreciation Calculation Example 10
Asset acquired in middle of accounting period using Date of Purchase basis. Record added several periods later, with "Catch-up" depreciation applied in the current accounting period. Date of Purchase method based on Days.
System-Wide Configuration: Spread "Catch-Up' among Remaining Periods in Purchase Year
| "Date of Purchase" Config: | Actual # Days in each Purchase Year Period |
| FY: | Calendar Year (January to December) |
| New Asset: | Acquired July 1, 2000 |
| Start Date: | July 1, 2000 |
| Cost: | $ 12,000 |
| Depr Method: | SL5 (20% each year), Date of Purchase Basis |
| Annual Depr: | (Year 1 to 5)) 12,000 * 20% = 2,400 |
| Current FY/Pd: | FY: 2000 Pd: 10 |
| Depr Yr/Days Remaining: (at time of initialization) | Depr Yr: 1 Days Remaining: 365 |
| Dates | No Days | FY | FY Pd |
|---|---|---|---|
| July 1 to July 31, 2000 | 31 | 00 | 7 |
| Aug 1 to Aug 31, 2000 | 31 | 00 | 8 |
| Sept 1 to Sept 30, 2000 | 30 | 00 | 9 |
| Oct 1 to Oct 31, 2000 | 31 | 00 | 10 |
| Nov 1 to Nov 30, 2000 | 30 | 00 | 11 |
| Dec 1 to Dec 31, 2000 | 31 | 00 | 12 |
| Jan 1 to Jan 31, 2001 | 31 | 01 | 1 |
| Feb 1 to Feb 28, 2001 | 28 | 01 | 2 |
| Mar 1 to Mar 31, 2001 | 31 | 01 | 3 |
| Apr 1 to Apr 30, 2001 | 30 | 01 | 4 |
| May 1 to May 31, 2001 | 31 | 01 | 5 |
| June 1 to June 30, 2001 | 30 | 01 | 6 |
| July 1 to July 31, 2001 | 31 | 01 | 7 |
End Of Purchase Year 1 - Begin Purchase Year 2
Basic Formula:
| (Including Current Pd)
[# Pds PYTD * Annual Depreciation] - PYTD Depr Total Days in PY (Including Current Pd) |
= Current Pd Depreciation |
|---|---|
| July 2000 | 31 Days |
| Aug 2000 | 30 Days |
| Sept 2000 | 31 Days |
| Oct 2000 | 31 Days |
| 123 Days Purchase YTD ( Including Current Period) |
This calculation combines the "Catch-Up" computation for the three missed periods with the computation for the current period.
| (Including Current Pd)
[# Pds PYTD * Annual Depreciation] - PYTD Depr Total Days in PY (Including Current Pd) |
= Current Pd Depreciation | |||
|---|---|---|---|---|
| FY00 Pd 10 | (123 * 2400)
365 |
- 0.00 | = | 808.77 |
| FY00 Pd 11 | (153 * 2400)
365 |
- 808.77 | = | 197.26 |
| FY00 Pd 12 | (184 * 2400)
365 |
- 1,006.03 | = | 203.83 |
| FY01 Pd 1 | (215 * 2400)
365 |
- 1,209.86 | = | 203.84 |
| FY01 Pd 2 | (243 * 2400)
365 |
- 1,413.70 | = | 184.11 |
| FY01 Pd 3 | (274 * 2400)
365 |
- 1,597.81 | = | 203.83 |
| FY01 Pd 4 | (304 * 2400)
365 |
- 1,801.64 | = | 197.26 |
| FY01 Pd 5 | (335 * 2400)
365 |
- 1,998.90 | = | 203.84 |
| FY01 Pd 6 | (365 * 2400)
365 |
- 2,202.74 | = | 197.26 |
End Of Purchase Year 1 - Begin Purchase Year 2
| (Including Current Pd)
[# Pds PYTD * Annual Depreciation] - PYTD Depr Total Days in PY (Including Current Pd) |
= Current Pd Depreciation | |||
|---|---|---|---|---|
| FY01 Pd 10 | (31 * 2400)
365 |
- 0.00 | = | 203.84 |
| FY01 Pd 11 | (62 * 2400)
365 |
- 203.84 | = | 203.83 |
...and so on.