Re: Reduce Asset Carrying Amount of Asset

Hi G.Sethuraman,

Thanks for the advice.

We tested and it seems to work but the planned depreciation amount is a bit strange.

Our actual example is actually up till 2015 i.e 3 years useful life, acquisition value of $3600. Grant is $1150.

The depreciation amount for each month in 2014 (Feb to Dec) is = (3600 - 1150 ) / 36 = 68.06.

The depreciation amount for each month in 2015 (Jan to Dec) is = (3600 - 1150 - 1300 - 68.06 * 11 ) / 12 = 33.45

Why isn't the depreciation amount distributed evenly in 2014 and 2015?

Thanks.