Accumulated Depreciation in Forecasts

In forecast periods, you forecast accumulated depreciation using these options:

Forecasting Accumulated Depreciation

Forecasting the ending balance of the Accumulated Depreciation account results in Accumulated Depreciation on Retirements being calculated as:

Operation

Accumulated Depreciation (beginning)

Input

$70

+

Depreciation Expense

Input

30

-

Accumulated Depreciation (ending)

Input

90

 

Acc Depreciation on Retirements

Calc

$10

Forecasting Accumulated Depreciation on Retirements

Forecasting Accumulated Depreciation on Retirements results in the Accumulated Depreciation account balance being calculated as:

Operation

Accumulated Depreciation (beginning)

Input

$70

+

Depreciation Expense

Input

30

-

Acc Depreciation on Retirements

Input

10

 

Accumulated Depreciation (ending)

Calc

$90

This method assumes all Retirements are fully depreciated, enabling you to independently forecast actual amounts of depreciation associated with retirements and the amount of depreciation expense in all future periods.