Follow the instructions in How to fully depreciate an under depreciated asset with the additional step of: For the Calculated Method: Note: The RV Method of depreciation has a Full Month convention. This means it will not take depreciation in the month of disposal. Any disposal must occur after the end of the life on the asset. Once the estimated life is calculated, the Disposal Date need to needs to be one month past the new end of life:
Example: - December Year End
- Placed in Service Date 01/01/2010
- Estimated Life 3 Years
- Beginning Date is 08/2016 After changing to the RV method.
- Desired End Date 09/2016
- To make this asset end on 09/2016, change the Life to 0609 (6 years 9 months). Notice the extra month Included in the final Estimated Life.
- The Disposal Date will be in 10/2016 or any later month
For the Manual Method: - The Disposal Date the same as the Beginning Date entered or any month after.
Note: You must adjust the General Ledger manually. [BCB:165:Chat Fixed Assets US:ECB] |