Korea Capital Expenditure DB (Method 47)

For the example that follows, these assumptions apply:

• Actual Start Date: May 15, 1997.

• Modified Start Date: January 1, 1997.

• Cost: 500.000 WON (without tax); 300.000 was added in 2000.

• Salvage: 1,000.

• Asset Life: 4 years (48 life periods).

This table shows the depreciation of an asset when using depreciation method 47:

Year	End of Year Date	Accumulated Depreciation	Depreciation Expense	Calculation
1997	December 31, 1997	-264.000	264.000	500.000 * 52.8 percent
1998	December 31, 1998	-124.608	124.608	(500.000 - 264.000) * 52.8 percent
1999	December 31, 1999	-58.815	58.815	(500.000 - 388.608) * 52.8 percent
2000	December 31, 2000	-186.161	186.161	(800.000 - 447.423) * 52.8 percent
2001	December 31, 2001	-87.868	87.868	(800.000 - 633.584) * 52.8 percent
2002	December 31, 2002	-77.549	77.549	800.000 - 721.451 - 1.000

Note: The asset was revalued with an additional 300.000 in the third year of the life.

This table explains the requirements for method 47:

Requirement	Explanation
Asset life	The demonstration data includes versions of method 47 for asset lives of 48 life periods.
Balance adjustments	Year-end with annual depreciation Apportioned by period in the year, based on percent
Modified start date	The modified start date is the whole year.
Conventions	Set the convention to continue depreciation beyond the asset's life, but not to exceed remaining basis.
Life year rules	Life years 1 to 5 at a fixed rate of 52.8 percent, including accumulated depreciation. Life years 6 to 998 take remaining basis, including salvage.
Calculations	Basis times the percent rate of 52.8 percent, including accumulated depreciation. Remaining basis includes salvage value.
Disposals	Method 47 has no disposal rules.