# Correctly calculating depreciation when transferring an asset? [closed]

I'm building an asset manager that will manage all fixed assets in one single web application for multiple schools.

Schools can transfer assets between them; this is where I get confused on the depreciation value.

Say School A purchases a new server for £5425.93 on 19/05/2017. They decide to transfer this asset to School B, 3 months later. The asset will be depreciated over 3 years, thus a depreciation end date of 19/05/2020.

At this point in time, the asset would have a depreciation charge of £4978.29:-

``````Year 1 - ((£5425.93 * 0.33) / 12) * 3 = £447.63

[TRANSFERRED ON 19/08/2017]

Net Book Value: £4978.29
``````

...and thus a net book value of £4978.29 because it is being "disposed" or "transferred".

Does the school then carry on depreciating from £4978.29 for the remaining 33 months? i.e. from the net book value carried over, which would be their purchase cost?

``````Year 1 - ((£4978.29 * 0.33) / 12) * 12 = £1642.84
Year 2 - ((£3335.45 * 0.33) / 12) * 12 = £1100.64
Year 3 - ((£2234.81 * 0.33) / 12) * 9 = £553.14

Final Value -  £1681.67
``````

Any help would be massively appreciated.