Example: You place an asset in service in Year 1, Quarter 1. The asset cost is $4,000, the life is 4 years, and you are using straight-line depreciation. In Year 4, Quarter 1, your tax authority requests that you change the depreciation taken in Year 2 from $1000 to $800.
Oracle Assets creates the following journal entries for the reserve adjustment:
| Account Description | Debit | Credit |
|---|---|---|
| Accumulated Depreciation | 200.00 | |
| Depreciation Adjustment | 200.00 |