Remaining Value Calculation for Add Transactions
The following table introduces the data used in the calculation example that follow 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 |
Remaining Value |
|
Convention |
Half-Year |
|
Method |
Straight-Line |
|
Depreciate When In Service Switch |
N |
|
Begin Depr Date |
7/1/2006 |
|
Remaining Value |
5,500 USD |
|
Remaining Life |
60 periods |
|
Yearly Depreciation (First year) |
550 USD |
Yearly Depreciation for 2006
Here is yearly depreciation for 2006 using the Remaining Value calculation type:
Number of Periods in a Year = Year End - Begin Depr Date
6 = December 31, 2006 - July 1, 2006
Percentage Depreciation for Year = Number of Periods in a year / Remaining Life
10 percent = 6 / 60
Yearly Depreciation = Percentage depreciation for the year x Remaining value
550 USD = 10 percent x 5,500 USD