Automatic Crossover

Automatic crossover lets you calculate depreciation using a declining balance or sum-of-the-years methods. It applies only to the user-defined and declining balance depreciation methods. Once the amount of depreciation is less than the straight line amount, the system uses straight line as the depreciation method. For example:

Asset Value = $5,000, Useful Life = 5 years, Depreciation Method, 200DB, No Salvage

  Straight Line  200DB

 1 1,000 1 2,000

 2 1,000 2 1,200

 3 1,000 3  720

 4 1,000 4  432

 5 1,000 5  259

Crossover would occur in year 3, as straight line is higher than 200DB.

Select the check box to switch to the straight line method when the straight line method results in a greater depreciation deduction than the UD or DB methods. Off displays when the Auto Crossover is initially selected. If a switch to the straight line method has occurred, On displays during depreciation generation.