Explicitly applying the mid-quarter convention for assets acquired in prior years

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The application automatically determines whether the mid-quarter convention applies and recalculates depreciation when necessary.

To explicitly include or exclude prior-year assets from the automatic mid-quarter determination and calculation, perform the following steps.

  1. Open the Asset List window for an activity.
  2. Select the desired prior-year asset and click the Modify button.
  3. Choose Tasks > Use Mid-Quarter Convention. The Use Mid-Quarter Convention - Prior Year Assets dialog opens.
  4. In this dialog, perform one of the following steps.
    • Mark the Calculate MACRS depreciation using mid-quarter convention checkbox on the tab for each of the appropriate treatments.
    • Mark the Calculate all treatments using mid-quarter convention checkbox. If you mark this checkbox, the Calculate MACRS depreciation using mid-quarter convention checkbox on each treatment tab is marked and not available.
  5. Click OK to save your changes.

Tips

  • When you choose to calculate MACRS depreciation using mid-quarter convention for a specific treatment, that treatment column heading (in the Depreciation tab) appears in blue.
  • The application also indicates that the asset is being depreciated using the mid-quarter convention by displaying the words "Mid-Quarter Applies" in blue just below the tab for the Depreciation tab. Show example.