Fixed Assets - EBS (MOSC)

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Incorrect MACRS calculation on asset after 1st depreciation run

edited Jan 28, 2010 7:18AM in Fixed Assets - EBS (MOSC) 1 commentAnswered
 Has anyone experience issues with MACRS calculated depreciation?  It looks like it is switching to straightline earlier than it should.  I believe it is supposed to switch to straight line in the year in which straight line deprec. exceeds accerated.  It looks like it is doing this a year earlier.  Does anyone have any ideas to help troubleshoot?  The prorate convention is placing the prorate date at mid year.

Asset Cost: 799
Depreciation Method: MACRS HY
Date in Service: 6/1/2002
Prorate Convention: HALFYEAR
Prorate Date: 7/1/02
Current Period: 4th QTR 2008 (December, 2008)
Depreciation Calculated: 799

Expected Depreciation to be calculated as follows:

2002, .14286*799= 114.14
2003, .2449*799= 195.68
2004, .17492*799= 139.76
2005, .12495*799= 99.84
2006, .08925*799= 71.31
2007, .08925*799= 71.31
2008, .08925*799=71.31
Total Deprec = 763.35

If we calculate what the depreciation would have been under straight line it would be (799/7yrs * 6.5 years) 741.93. It should only be switching to straight lne if the straight line depreciation is higher.

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