Partial-year depreciation
Objective: Compute first-year depreciation for mid-year purchases.
Recommended first: Straight-line depreciation
If an asset is placed in service partway through the year, the first year's depreciation covers only the months in service. Under the monthly convention used here, an asset in service from the first day of month N gets 12 − N + 1 months in year one.
Count months carefully: an asset placed in service on the first day of April is used for nine months in a calendar year. Exercises state the convention; this course uses whole months from the first of the month. The final year of the asset's life will also be partial if the first year was.
Check your work
- How many months was the asset in service?
- Is the monthly amount correct?
- Is the convention stated in the task applied?
Monthly depreciation $100; July–December = 6 months = $600.
| Account | Debit | Credit |
|---|---|---|
| Depreciation Expense | $600.00 | |
| Accumulated Depreciation – Equipment | $600.00 |
Common mistakes
✗ Taking a full year in the purchase year.
✓ Count months in service.
Guided practice
Use hints freely here.
Item 1 of 1
Partial-year depreciation
Greenway Landscaping placed equipment costing $16,200.00 (no salvage, 5-year life, straight-line, monthly convention) in service on the first day of month 7 of 2026. Record depreciation for the year ended Dec 31, 2026.
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Independent practice
Try these without hints. Completing the lesson needs at least one independent item solved without revealing the answer.
Item 1 of 2
Book value after depreciation
Equipment cost $5,800.00, has a salvage value of $1,000.00, and a 8-year life (straight-line). What are the annual depreciation, the accumulated depreciation after 2 year(s), and the book value at that point?
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References and provenance
- OpenStax, Principles of Accounting, Volume 1: Financial Accounting (accessed 2026-10-29)
Original lesson written for Bookkeeping Exercises (AI-assisted drafting). Calculations are verified by the platform's automated accounting tests. Not yet reviewed by a credentialed accountant. Updated 2026-10-29.