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 FA 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

-12,500.00

87,500.00

12/31/00

Depreciation

180

-12,500.00

75,000.00

06/30/01

Depreciation

180

-9,375.00

65,625.00

12/31/01

Depreciation

180

-9,375.00

56,250.00

06/30/02

Depreciation

180

-7,031.25

49,218.75

12/31/02

Depreciation

180

-7,031.25

42,187.50

06/30/03

Depreciation

180

-5,273.44

36,914.06

12/31/03

Depreciation

180

-5,273.44

31,640.62

06/30/04

Depreciation

180

-3,955.08

27,685.54

12/31/04

Depreciation

180

-3,955.08

23,730.46

*Depreciation start date

Calculation Method:

1st Year: 25% of 100,000 = 25,000 = 12,500 + 12,500

2nd Year: 25% of 75,000 = 18,750 = 9,375 + 9,375

3rd Year: 25% of 56,250 = 14,062.50 = 7,031.25 + 7,031.25

The calculation continues until the book value equals the final rounding amount or the salvage value that you entered.

See Also