Hi Experts,
It's a complicated issue about asset depreciation. I hope someone can show up and help me.
The assets use multilevel method (by period),period control is 11/11/01/01
The depreciation (acquisition value/12*rate) is correct from begining, after subsequent acquisition (happened in period 5 last year of useful life) , the depreciation((original acquisition+subsequent acquisition)/12*rate ) at period 6-8 is correct, but the yearly planned depreciation (original acquisition-accumulated previous year depreciation) turned to accumulated depreciation from period 6-10 at period 6, then depreciation from period 9-10 (last two periods in last year of useful life) suddenly turned to positive. It seems to meet the sum depreciation of period 6-10.
This issue happens to all assets occuring subsequent acquistion.
For example,
The multilevel method in year is
Period1 2%
Period2 1%
Period3 5%
Period4 2%
Period5 2%
Period6 6%
Period7 2%
Period8 4%
Period9 3%
Period10 1%
Asset Original Acquisition value is 1200
Previous year's depreciation 1172
Period1 Depreciation -(1200/12*2%)=-2 Planned depreciation this year 28
Period2 Depreciation -(1200/12*1%)=-1 Planned depreciation this year 28
Period3 Depreciation -(1200/12*5%)=-5 Planned depreciation this year 28
Period4 Depreciation -(1200/12*2%)=-2 Planned depreciation this year 28
Period5 Depreciation -(1200/12*2%)=-2 Planned depreciation this year 28 Subsequent Acquistion 300
Period6 Depreciation -((1200+300)/12*6%)=-7.5 Planned depreciation this year 20
Period7 Depreciation -((1200+300)/12*2%)=-2.5 Planned depreciation this year 20
Period8 Depreciation -((1200+300)/12*4%)=-5 Planned depreciation this year 20
Period9 Depreciation -((1200+300)/12*3%)=-3.75(Should be) System Calculated 6 Planned depreciation this year 20
Period10 Depreciation -((1200+300)/12*1%)=-1.25(Should be) System Calculated 1 Planned depreciation this year 20
Thanks