Method 09, Units of Production Method

When you use the units of production depreciation method, you must indicate the current year-to-date method of computation, as follows:

((Year-to-date production) / (depreciable unit base)* ((asset cost) - (accumulated depreciation)))

The system calculates the depreciable unit base as follows:

(Original units revisions to estimate) - (prior year's production) = (depreciable unit base)

You must run the Units of Production Close procedure to roll current year information forward into the following year.