Incorrect MACRS calculation on asset after 1st depreciation run
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.