Korea Straight Line (Method 41)

For the example that follows, these assumptions apply:

This table shows the depreciation of an asset when using depreciation method 41:

Year	End of Year Date	Accumulated Depreciation	Depreciation Expense	Calculation
1997	December 31, 1997	-125.000	125.000	500.000 * 48 / 12
1998	December 31, 1998	-125.000	125.000	500.000 * 48 / 12
1999	December 31, 1999	-125.000	125.000	500.000 * 48 / 12
2000	December 31, 2000	-124.00	124.000	500.000 - 375.000 - 1
2001	December 31, 2001	N/A	N/A	N/A

Example prior to January 1, 1995:

Actual Start Date: July 15, 1994.
Modified Start Date: January 1, 1994.
Cost: 500.000 WON (without tax).
Salvage: 10 percent cost for 48 periods, 8 percent, 6 percent, 4 percent, 2 percent of cost and 1000.
Asset Life: 4 years (48 life periods).

This table shows the depreciation of an asset when using depreciation method 41 prior to 1995:

Year	End of Year Date	Accumulated Depreciation	Depreciation Expense	Calculation
1994	December 31, 1994	-112.500	112.500	(500.000 - 50.000) * 48 / 12
1995	December 31, 1995	-112.500	112.500	(500.000 - 50.000) * 48 / 12
1996	December 31, 1996	-112.500	112.500	(500.000 - 50.000) * 48 / 12
1997	December 31, 1997	-112.500	112.500	(500.000 - 50.000) * 48 / 12
1998	December 31, 1998	-10.000	-10.000	(500.000 - 450.000 - 40.000)
1999	December 31, 1999	-10.000	-10.000	(500.000 - 460.000 - 30.000)
2000	December 31, 2000	-10.000	-10.000	(500.000 - 470.000 - 20.000)
2001	December 31, 2001	-10.000	-10.000	(500.000 - 480.000 - 10.000)
2002	December 31, 2002	-9.00	-9.000	(500.000 - 490.000 - 1.000)
2003	December 31, 2003	N/A	N/A	N/A

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

This table explains the requirements for method 41:

Requirement	Explanation
Asset life	The demonstration data includes versions of method 41 for asset lives of 48 and 60 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, first half/second half, or midyear.
Conventions	Disposal conventions are set for first half/second half.
Life year rules	Life years 1 to 1 straight line with initial year apportionment. Life years 2 to 4 straight line. Life year 5 depreciates to 8 percent salvage. Life year 6 depreciates to 6 percent salvage. Life year 7 depreciates to 4 percent salvage. Life year 8 depreciates to 2 percent salvage. Life year 9 depreciates to 1.000.
Calculations	Straight line is the asset life divided by normal number of periods. Basis includes salvage value for the remaining compute direction.
Disposals	Method 41 has no disposal rules.