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Former Member
Feb 02, 2011 at 03:34 AM

Fixed Asset with different Dep.scenarios

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Hi All,

I have a situation in Fixed Assets:

Just to illustrate, sample asset should be calculated below on FEDERAL book on its first year of acquisition: (Let's keep the numbers very simple)

A) Orig APC - $1000.00

B) Normal Depreciation Rate - 5%

C) Depreciation for the year = A*B = 50

D) Net value after Normal Depreciation = A - C = 1000 - 50 = 950

Govt has announced a special Depreciation on the above asset of 50%, which should be calculated on the Net vlaue after normal Depreciation. Here are the numbers:

D) Net value after Normal Depreciation = 1000 - 50 = 950

E) Special Deprecaition Rate 50% on D

F) Spl Depreciation for the year = DE = 95050% = 475

G) Net Value after Normal&Spl Depreciaton = D - F = 475

Now Govt has announced another Bonus Deprecaition on the above asset, which should be calculated on the Net Value after Normal & Special Depreciaton, here are the numbers:

G) Net Value after Normal&Spl Depreciaton = D - F = 475

H) Bonus Depreciation Rate 20% on G

I) Bonus Depreciation for the year = G * H = 475 * 20% = 95

K) Net Value after Normal, Spl and Bonus Depreciation/

Net Book Value (NBV) at the end of the first year) = G - I = 475 - 95 = 380

Please let me know how could i archive this scenarios .

Thanks & Regards

Praveen