Hi all,
We purchased an asset on 1.1.2012 for $60000 with a useful life of 5 years. Depreciation is based on useful life of the asset. The monthly depreciation is $1000.
This asset has to transfer to intercompany A on 1.7.2012 with NBV $54000. Now, how should i calculate the depreciation on intercompany A's book?
Thanks & Regards,
Wee
Take the original cost as 5,40,000. the remaining useful life of the asset is 4.5 years and the depreciation is calculated accordingly.
Here is the Calcs:
| Cost | Life in Months | Monthly Dep. | NBV | Remaining Life in Months | Dep in IC "A" Books |
| 60000 | 60 | 1000 | 54000 | 54 | 1000 |
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