B Depreciation Examples
This appendix contains these topics:
B.1 Depreciation Formulas
Set up the following depreciation formulas for your depreciation rules.
| Rule | Formula |
|---|---|
| Base/Limit | The Base/Limit is the total amount that can be depreciated over the life of the asset. Define the Base/Limit as the cost of the asset less its salvage value.
Formula ID: BGS Formula: 01-07 |
| Salvage Value | Define the Salvage Value as a percentage of the asset's acquisition cost.
Formula ID: SGS Formula: 01*12 Multiplier/Constant: 5.0 |
Set up the following depreciation formulas for your assets.
| Asset | Formula |
|---|---|
| Assets acquired during the first half of year | Define a formula for assets that are placed in service in the first half of the company's fiscal year. The initial depreciation for the assets is computed for the entire year.
Formula ID: FYG Description: Full Year German Column Heading 1/2: Initial/Full Year Formula: 01/03*12 Multiplier/Constant: 12 |
| Assets acquired in the second half of year | Define a formula for assets that are placed in service in the second half of the company's fiscal year. The initial depreciation is computed for a half year.
Formula ID: HYG Description: Half Year German Column Heading 1/2: Initial/Half Year Formula: 01/03*12 Multiplier/Constant: 6 |
| Assets during second and subsequent years | Define a formula to compute the depreciation for all assets that are in service during the second and subsequent years.
Formula ID: 101 Description: Straight Line Formula: 10/03 |
Figure B-1 Depreciation Formula Revision screen (Base/Limit)
Description of "Figure B-1 Depreciation Formula Revision screen (Base/Limit)"
Figure B-2 Depreciation Formula Revision screen (Salvage Value)
Description of "Figure B-2 Depreciation Formula Revision screen (Salvage Value)"
Figure B-3 Depreciation Formula Revision screen (Assets During First Half Year)
Description of "Figure B-3 Depreciation Formula Revision screen (Assets During First Half Year)"
Figure B-4 Depreciation Formula Revision screen (Assets During Second Half Year)
Description of "Figure B-4 Depreciation Formula Revision screen (Assets During Second Half Year)"
Figure B-5 Depreciation Formula Revision screen (Second and Subsequent Years)
Description of "Figure B-5 Depreciation Formula Revision screen (Second and Subsequent Years)"
Figure B-6 Depreciation Formula Revision screen (Item Balance % of Basis)
Description of "Figure B-6 Depreciation Formula Revision screen (Item Balance % of Basis)"
Figure B-7 Depreciation Formula Revision screen (Investment Tax)
Description of "Figure B-7 Depreciation Formula Revision screen (Investment Tax)"
Figure B-8 Depreciation Formula Revision screen (ITB Amount)
Description of "Figure B-8 Depreciation Formula Revision screen (ITB Amount)"
Figure B-9 Depreciation Formula Revision screen (Replacement Cost)
Description of "Figure B-9 Depreciation Formula Revision screen (Replacement Cost)"
Figure B-10 Depreciation Formula Revision screen (Lower Limit 1000)
Description of "Figure B-10 Depreciation Formula Revision screen (Lower Limit 1000)"
Figure B-11 Depreciation Formula Revision screen (Upper Limit 2500)
Description of "Figure B-11 Depreciation Formula Revision screen (Upper Limit 2500)"
Figure B-12 Depreciation Formula Revision screen (Cost Less Salvage)
Description of "Figure B-12 Depreciation Formula Revision screen (Cost Less Salvage)"
B.2 Depreciation Rules
Figure B-13 Depreciation Rule Revisions screen (Mid-Year Convention)
Description of "Figure B-13 Depreciation Rule Revisions screen (Mid-Year Convention)"
Figure B-14 Depreciation Rule Revisions screen (Mid-Year Conventions, Full Year)
Description of "Figure B-14 Depreciation Rule Revisions screen (Mid-Year Conventions, Full Year)"
Figure B-15 Depreciation Rule Revisions screen (Mid-Year Conventions, Half Year)
Description of "Figure B-15 Depreciation Rule Revisions screen (Mid-Year Conventions, Half Year)"
Figure B-16 Depreciation Rule Revisions screen (Mid-Year Conventions, Second and Subsequent Years)
Description of "Figure B-16 Depreciation Rule Revisions screen (Mid-Year Conventions, Second and Subsequent Years)"
Figure B-17 Depreciation Rule Revisions screen (German Buildings)
Description of "Figure B-17 Depreciation Rule Revisions screen (German Buildings)"
Figure B-18 Depreciation Rule Revisions screen (German Income Tax Credit)
Description of "Figure B-18 Depreciation Rule Revisions screen (German Income Tax Credit)"
Figure B-19 Depreciation Rule Revisions screen (Replacement Cost)
Description of "Figure B-19 Depreciation Rule Revisions screen (Replacement Cost)"