how to define Bonus rules in order to calculate the total bonus amount in the asset date placed in s
Hi,
our requirement is to calculate the bonus amount in the asset date placed in service.
Exapmle:
Asset orginal cost is 5000
Date placed in service is 22-Jan-2006
Years 7
Bonus rate: 50%
1) 2,500 (i.e. 50%) of bonus depreciation should be calculated and included in the depreciation expense for January, 2006.
2. The depreciation expense for each year is calculated on the remaining basis after the bonus depreciation has been taken. Since 2,500 has already been expensed through bonus depreciation in January, 2006, there is only 2,500 remaining to be depreciated.
Total 2006 Depreciation
2,857.25
Total 2007 Depreciation
612.25
Total 2008 Depreciation
437.25
Total 2009 Depreciation
312.25
Total 2010 Depreciation
223.25
Total 2011 Depreciation
223.00
Total 2012 Depreciation
223.25
Total 2013 Depreciation
111.50
Total Depreciation
0