I have a fixed asset that is acquired midway through a month. The depreciation should still be straight-line, equal across all months, so using 360 day calendar. This includes the first month, that should have a full month of depreciation, even though it was acquired mid way. For the first year, I need an adjusting entry to reduce the depreciation. But then I still want the depreciation to calculate correctly for future years at the straight line amount base on the original acquisition value. The issue I find right now is if I make a adjusted depreciation entry to reduce in the first year, the 2nd year onwards the depreciation does not calculate correctly as it takes into account the changed book value. Is there a way to enter this to make the straight line depreciation still work?
