Partial Year Depreciation - COB 241, James Madison University

in Topic 8 (Video 7 of 8)

6 minutes

If you buy an asset in the middle of the year, you have to adjust your depreciation calculations to account for that.

This Video Mentioned Some Formulas

Depreciable Base = Cost - Salvage Value

Partial Year Depreciation Expense = SL or DDB Full Year Expense * Months In Service / 12

When using units of production, there is no "partial year" formula, since UoP is not time based in the first place.

1	Acquisition Cost of Assets	13:23
2	Lump Sum Purchases	6:01
3	What is Depreciation?	11:23
4	Straight Line Depreciation	4:33
5	Double Declining Balance	13:58
6	Units of Production	3:43
7	Partial Year Depreciation You are here.	5:50
8	Capital vs. Revenue Expenditures	10:42

	Click Here to View All Topic 8 Problems at Once	View
1	The Effect of Amortization	Easy
2	The Effect of Capital vs Revenue Expenditures	Easy
3	Calculating Depreciation using DDB	Moderate
4	Change in Depreciation	Moderate
5	Failure to Record Depreciation	Moderate