Depreciation Guru

Depreciation Experts Since 1991

Rounding errors have traditionally been an issue found when using depreciation software.  The problem comes from the basic division of asset cost over a number of periods.  For example, take a fixed asset with a cost of $1.00 spread over 3 months.  This would result in $.33 per period, but when multiplied by 3 periods [...]

With all of the rules and regulations governing depreciation, and the various methods of depreciation, one may find it difficult to actually calculate depreciation.  This post will hopefully serve as a basic comprehensive guide to calculating depreciation under different circumstances.  The following examples are based upon use of half year averaging convention.
Straight-Line Method:
Annual Depreciation [...]