Depreciation calculation at regular period close
After the depreciation is calculated at the close of each period, the
asset catch-up depreciation for the previous distribution periods are spread evenly over
the remaining periods for the year.
| Compute option | No |
|---|---|
| Journal entries that are generated |
|
| Result | The depreciation for the prior depreciation periods is fully recovered at the end of the current year. |
| Additional steps that are required | None |
| Comments | Select No in the Compute Option field for assets with in-service dates from the previous period. The depreciation amounts that are displayed for each period are not the expected amounts. Depreciation must proceed at a higher amount per period than its prediction to create the asset's basis depreciate to the end of its life. |