Straight-line Depreciation issue......

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Posted on by Brenda Willey

2,520

Not sure how to explain this to the client how the Periodic Depr Rate is calculated.

I get the 60.6745 Daily rate = 110,731/5/365 AND if I multiply the daily rate by 365 i get $22,146.19 which is the number the client is looking for the Yearly Depr but the Yearly Depr Rate is 18,505.7288 Why?? It is a normal fiscal year setup all periods start on the first of the month.

Also i can not get to the 1,856.57 Cur Run Depr. This should have been for July which has 31 days. 31*60.6745 = 1,880.9095. Even if i use 30 days ... 30 * 60.6745 = 1,820.235