Estimated Life Field

Use this book information field in Asset Detail to enter the asset's estimated life, in the format YY/MM. The system uses this field to determine the time period over which the asset will recover its depreciable basis. Generally, you cannot enter an estimated life of less than 1 year for an asset. (Although for the declining-balance and sum-of-the-years'-digits methods, the minimum estimated life is 3 years.) An exception is If the asset's depreciation method is straight-line (SL), remaining value over remaining life (RV), or your own depreciation calculation (OC), the estimated life can be 1 to 11 months. Method OC lets you manually enter depreciation amounts; the application does not calculate depreciation for the asset.