Case 4: Add Transactions
The following table shows data that is used in the calculation example that follows it.
| Attributes | Data |
|---|---|
|
Transaction Date |
10/1/2006 |
|
Accounting Date |
10/1/2006 |
|
In-Service Date |
3/1/2006 |
|
Life |
60 periods |
|
Cost |
6,000 USD |
|
Accumulated Depreciation |
500 USD |
|
Calculation Type |
Life to Date |
|
Convention |
Half-Year |
|
Method |
Straight-Line |
|
Depreciate When In Service Switch |
Y |
|
Begin Depr Date |
7/1/2006 |
|
Begin Calc Date |
7/1/2006 |
|
Remaining Value |
6,000 USD |
|
Remaining Life |
60 periods |
|
Yearly Depreciation (First year) |
600.00 USD |
|
Period Allocation (First year) |
60 USD |
|
Prior Period Depreciation |
(80) USD |
Depreciation Results
The following table shows yearly depreciation by period for 2006. Prior period depreciation occurred in periods 3 through 9.
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | Period |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
60 |
60 |
60 |
60 |
60 |
60 |
60 |
60 |
60 |
60 |
Allowed |
|
|
|
|
|
|
500 |
|
|
|
60 |
60 |
60 |
Taken |
|
|
|
60 |
60 |
60 |
(440) |
60 |
60 |
60 |
|
|
|
Difference |
Prior Period Depreciation
Here is the prior period depreciation:
Difference Per Period = Period Depreciation Allocation (allowed) - Depreciation⇒
TakenExample Period 7: 60 USD - 0 = 60 USDBegin Calc Date = Begin Depr DatePeriods from In Service to Accounting Date =3, 4, 5, 6, 7, 8, 9 = Periods within 3/1/2006 to 10/1/2006Prior Period Depreciation = Sum of Difference Per Period for all periods within In
Service Date to Accounting Date(80) USD = 60 USD + 60 USD + 60 USD + (440) USD + 60 USD + 60 USD + 60 USD