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How Is Depreciation Calculated For Straight Line (STL) Depreciation Method And Daily Prorate Calenda

edited Apr 29, 2015 3:35AM in Fixed Assets - EBS (MOSC) 2 commentsAnswered ✓

I need help on calculating straight line depreciation based on a daily prorate convention.

Date placed in service (DPIS) : 14-Nov-2003
Amortize Start Date = 30-Apr-2006
Amortize Flag = Y
Cost : 1,020,000.00
Accumulated Depreciation : 0.00
Salvage Value: 112500.00
Life = 40 Years



Monthly depreciation =  (Cost minus Salvage value)  divided by remaining life of the asset


Based on the document I am not getting the remaining life as per the doc (37 years + 227/365 days  = 37.6219 years)



I am using excel to calculate the remaining life ie I take 13-Nov-2043 and subtract 30-April 2006 to it. I am getting 13711 days ie 37.56 years


I am not getting the same life in years as per the doc.

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