Select this option to calculate prorated depreciation for a partial year based on the number of days left in the period Prorated ...

Select this option to calculate prorated depreciation for a partial year based on the number of days left in the period Prorated depreciation applies only when None is selected in the Depreciation convention fiel. For example, an asset is acquired on October 10. The depreciation frequency is yearly. The expected depreciation for the first year is 1,200.00. If this option is selected, depreciation is calculated as 272.88 for the first year's depreciation: 22 days for October + 30 days for November + 31 days for December = 83 days. (83 days / 365 days) x 1200.00=272.88. If this option is not selected, depreciation is calculated as 270.97 for the first year's depreciation: 100.00 x 2 (there are 2 full months remaining of the 12 month year) + ((22 days from October / 31 days in October) x Monthly depreciation of 100.00) = 270.97. 100.00 x 2 months + (22 days / 31 days) x 100.00 = 270.97 for the first year's depreciation.