Depreciation Calculation for Amortized Transaction in Use transaction period Basis Rule
I would like to know how depreciation is calculated for a amortized trasaction when "use transaction period Basis" depreciation basis is used.
For example the asset has below details
Cost - 12000
Rate - 20%
DPIS -01-FEB-2008
Prorate date Begining of the month
Current open period - Jun-09
So depreciation reserve at the begining of May-09
Depreciation from Feb-08 to Dec-08
12000 *20%/12 = 200 * 11 =2200
Depreciation from Jan-09 to May-09
(12000-2200)*20%/12 = 163.33 *5= 816.67
So total depreciation reserve = 816.67 + 2200 = 3016.67
In Jun-09, increased cost by 2000 and amoritzed the transaction with a amortization start date of 01-JAN-2009. In this case system reversed the depreciation amount of - 1850.00
The reversed amount is calculated as follows