Asset transfer and depreciation calculation

A/c entries 1292 views 2 replies

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

Replies (2)

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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