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Depreciation - sum of years digits


The system computes sum of years digits depreciation as follows:

Step 1.   Calculates the depreciation base (original cost + capitalized value)

Step 2.   Calculates the depreciation remaining (depreciation base - depreciation previously taken)

Step 3.   Performs the following tasks, dependent on the depreciation remaining

Step 4.   Calculates the sum of the year's digits, starting with zero and ending with the year of the unit's life. (For example, for year 4, the sum of the year's digits = 0 + 1 + 2 + 3 + 4 = 10.)

Step 5.   Calculates the years remaining in the unit's life (depreciation months remaining/12). If there is a fractional remainder and the months remaining is less than the life months, FASuite adds 1 to the quotient.

Step 6.   Performs the following tasks, dependent on the number of years remaining:

Step 7.   Subtracts 1 from the depreciation months remaining.

Step 8.   If the depreciation for the current month is more than the depreciation remaining, FASuite sets the following: