German Building (Method 22)
For the example that follows, these assumptions apply:
Actual Start Date: March 15, 1997.
Modified Start Date: March 1, 1997.
Cost: 3.600.000,00 DEM (without tax).
Asset Life: 5 years (60 life periods).
This table shows the depreciation of an asset when using depreciation method 22:
Year |
End of Year Date |
Accumulated Depreciation |
Depreciation Expense |
Calculation |
|---|---|---|---|---|
1997 |
December 31,1997 |
-210.000 |
210.000 |
3.600.000 * 7 percent for 10 periods |
1998 |
December 31, 1998 |
-252.000 |
252.000 |
3.600.000 * 7 percent for 12 periods |
1999 |
December 31, 1999 |
-252.000 |
252.000 |
3.600.000 * 7 percent for 12 periods |
2000 |
December 31, 2000 |
-252.000 |
252.000 |
3.600.000 * 7 percent for 12 periods |
2001 |
December 31, 2001 |
-252.000 |
252.000 |
3.600.000 * 7 percent for 12 periods |
2002 |
December 31, 2002 |
-132.000 |
132.000 |
3.600.000 * 7 percent for 2 periods, 3.600.000 * 5 percent for 10 periods |
2003 |
December 31, 2003 |
-108.000 |
108.000 |
3.600.000 * 5 percent for 12 periods |
2004 |
December 31, 2004 |
-108.000 |
108.000 |
3.600.000 * 5 percent for 12 periods |
2005 |
December 31, 2005 |
-108.000 |
108.000 |
3.600.000 * 5 percent for 12 periods |
2006 |
December 31, 2006 |
-108.000 |
108.000 |
3.600.000 * 5 percent for 12 periods |
2007 |
December 31, 2007 |
-132.000 |
132.000 |
3.600.000 * 5 percent for 2 periods, 3.600.000 * 2.5 percent for 10 periods |
2008 |
December 31, 2008 |
-90.000 |
90.000 |
3.600.000 * 2.5 percent for 12 periods |
2009-2025 |
December 31, 20xx |
-90.000 |
90.000 |
3.600.000 * 2.5 percent for 12 periods |
2026 |
December 31, 2026 |
-90.000 |
90.000 |
3.600.000 * 2.5 percent for 12 periods |
2027 |
December 31, 2027 |
-7.500 |
7.500 |
3.600.000 * 2.5 percent for 2 periods |
This table explains the requirements for method 22:
Requirement |
Explanation |
|---|---|
Asset life |
The demonstration data includes versions of method 22 for an asset life of 360 life periods. |
Balance adjustments |
The depreciation percent changes, based on the asset life year. Use the asset life year reference to force period adjustments. |
Modified start date |
The modified start date is the start of the period. |
Conventions |
The life year reference should come from the modified start date. |
Life year rules |
Asset life years are used, instead of fiscal life years. Life year 1 to 5 takes 7 percent. Life year 6 to 10 takes 3 percent. Life year 11 to 20 takes 2.5 percent. |
Calculations |
Formulas must use the multiplier times the annual percent. The basis is cost. |
Disposals |
Method 22 has no disposal rules. |