50% Bonus Depreciation
Hi Gurus,
I have a trivial requirement.
My client had many assets which underwent 50% bonus depreciation in the year of addition. Now we migrated these assets as of 01-Jan-2011 (go live date). Since these assets have already been depreciated with bonus depreciation, they should now be depreciated at reduced rate. I attached MACRS 50B HY depreciation method for one of such asset. Here is the calculation;
Asset # 102765
Cost: 1286.98
Life: 5 yrs
DPIS: 12-MAY-2008
Prorate date: 01-JUL-2008
Book: DOMEST FED TAX
Now, Oracle picks up rates from the dep method MACRS 50B HY whereas the client expects that the system should depreciate based on "Adjusted Basis' i.e. Cost of the asset after 50% bonus depreciation in first year in this case 643.49 $. The accumulated depreciation loaded during conversion is as per depreciation on Adjusted Basis.
I have a trivial requirement.
My client had many assets which underwent 50% bonus depreciation in the year of addition. Now we migrated these assets as of 01-Jan-2011 (go live date). Since these assets have already been depreciated with bonus depreciation, they should now be depreciated at reduced rate. I attached MACRS 50B HY depreciation method for one of such asset. Here is the calculation;
Asset # 102765
Cost: 1286.98
Life: 5 yrs
DPIS: 12-MAY-2008
Prorate date: 01-JUL-2008
Book: DOMEST FED TAX
Now, Oracle picks up rates from the dep method MACRS 50B HY whereas the client expects that the system should depreciate based on "Adjusted Basis' i.e. Cost of the asset after 50% bonus depreciation in first year in this case 643.49 $. The accumulated depreciation loaded during conversion is as per depreciation on Adjusted Basis.
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