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.