A fixed asset has an acquisition cost of LCY 100,000. The Declining-Balance % field is 25. The Calculate Depreciation batch job is run biannually. The fixed asset ledger entries look like this:
|
Date |
FA Posting Type |
Days |
Amount |
Book Value |
|
01/01/00 |
Acquisition Costs |
|
100,000.00 |
100,000.00 |
|
06/30/00 |
Depreciation |
180 |
-13,397.46 |
86,602.54 |
|
12/31/00 |
Depreciation |
180 |
-11,602.54 |
75,000.00 |
|
06/30/01 |
Depreciation |
180 |
-10,048.09 |
64,951.91 |
|
12/31/01 |
Depreciation |
180 |
-8,701.91 |
56,250.00 |
Calculation Method:
BV = Book value, ND = No. of Depreciation Days, DBP = Declining-Balance Percent, DA = Depreciation Amount, P = DBP/100, D = ND/360
The formula for calculating the depreciation amounts is: DA = BV * (1-(1-P)D)
06/30/00 DA = 100,000.00 * (1-(1-0.25)0.5) = 13,397.46
12/31/00 DA = 86,602.54 * (1-(1-0.25)0.5) = 11,602.54
06/30/01 DA = 75,000.00 * (1-(1-0.25)0.5) = 10,048.09
12/31/01 DA = 64,951.91 * (1-(1-0.25)0.5) = 8,701.91
The calculation continues until the book value equals the final rounding amount or the salvage value that you entered.