Depreciation-MACR MID QTR convention

[Former Member]

he requirement was; for 2015,  50% Bonus MACRS Method with Mid-Quarter Convention for 3, 5, and 7 year lives depreciation calculation was needed. I had configured Depreciation Key Z251.

The depreciation computation on acquisition in 2015 is working perfectly.

Have issues with depreciation in following cases:

1.    For additions made during the subsequent year the depreciation is not calculating correctly.

Example provided by user:-

So let's say that in 2016 there was an additional 10,000 added to the cost of asset . The depreciation expense for 2016 would be $21,050 calculated as follows:

13,000.00       2016 Depreciation Expense on the original $100,000 Cost Asset

   5,000.00         Bonus Depreciation Expense on the $10,000 Cost Addition in 2016 that is begin caught up

1,750.00         2015 Depreciation Expense on the $10,000 Cost Addition in 2016 that is begin caught up

1,300.00         2016 Depreciation Expense on the $10,000 Cost Addition in 2016

2.    For retirements of asset is made in the year of acquisitions, the depreciation should not be calculated at all. But if the asset is retired in subsequent years then depreciation is to computed.

How the rule relating to retirement is to be taken care of?

Thanks and Regard

bhaskar

[former_member198450 · Accepted solution]

HI Bhaskar,

I think you have posted your query in wrong group. It should fall under FI.

Regards,

Jain