Cost Adjustments to Assets Using a Flat-Rate Depreciation Method
Example: You place an asset in service in Year 1, Quarter 1. The recoverable cost is $4,000. You are depreciating the asset cost at a 20% flat-rate. The bonus rate is 10%. In Year 1, Quarter 4, you change the recoverable cost to $4,800.
| Asset Clearing
| 800.00
|
|
| Accounts Payable Liability
|
| 800.00
|
| Asset Cost
| 800.00
|
|
| Asset Clearing
|
| 800.00
|
Expensed
| Depreciation Expense
| 240.00
|
|
| Bonus Expense
| 120.00
|
|
| Depreciation Expense (adjustment)
| 120.00
|
|
| Bonus Expense (adjustment)
| 60.00
|
|
| Accumulated Depreciation
|
| 360.00
|
| Bonus Reserve
|
| 180.00
|
Amortized
| Depreciation Expense
| 240.00
|
|
| Bonus Expense
| 120.00
|
|
| Accumulated Depreciation
|
| 240.00
|
| Bonus Reserve
|
| 120.00
|
