Korea Capital Expenditure SL (Method 43)

For the example that follows, these assumptions apply:

• Actual Start Date: July 15, 1997.

• Modified Start Date: January 1, 1997.

• Cost: 500.000 WON (without tax); additional revaluation 300.000 in 2000.

• Salvage: 1,000 WON.

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

This table shows the depreciation of an asset when using depreciation method 43:

Year	End of Year Date	Accumulated Depreciation	Depreciation Expense	Calculation
1997	December 31, 1997	-125.000	125.000	500.000 * 25 percent
1998	December 31, 1998	-125.000	125.000	500.000 * 25 percent
1999	December 31, 1999	-125.000	125.000	500.000 * 25 percent
2000	December 31, 2000	-200.000	200.000	800.000 * 25 percent
2001	December 31, 2001	-200.000	200.000	800.000 * 25 percent
2002	December 31, 2002	-24.000	24.000	800.000 - 775.000 - 1.000

Note:

The asset was revalued in the 4th year of the asset's life. The revaluation amount is included in the remaining calculations to finish depreciation.

This table explains the requirements for method 43:

Requirement	Explanation
Asset life	The demonstration data includes versions of method 43 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	Allow depreciation beyond the asset's life, but do not exceed remaining basis.
Life year rules	Life years 1 to 3 take 25 percent. Life years 4 to 4 take 50 percent remaining basis, not including salvage. Life year 5 depreciates remaining basis, including salvage.
Calculations	Cost at the rate of 25 percent. Half of remaining basis, not including salvage. Basis includes salvage value.
Disposals	Method 43 has no disposal rules.