How System Calculate Depreciation for MACRS 80B HY Depreciation Method in Oracle Cloud

Summary:

How does the system calculate depreciation using the MACRS 80B HY method when the asset is placed in service on November 1, 2024, and an 80% bonus depreciation is applied. According to the system’s calculations, the total depreciation for the first year amounts to $8,400, which includes $8,000 in bonus depreciation and $400 in normal depreciation. However, the normal depreciation should be $200.

We need clarification on how the depreciation calculation works for the first year of the asset using this method.

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