Cost Adjustments to Assets Using a Life-Based Depreciation Method
Example: You place an asset in service in Year 1, Quarter 1. The recoverable cost is $4,000. The life of your asset is 4 years, and you are using straight-line depreciation. The bonus rate is 10%. In Year 1, Quarter 4, you receive an additional invoice for the asset and 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
| 300.00
|
|
| Bonus Expense
| 120.00
|
|
| Depreciation Expense (adjustment)
| 150.00
|
|
| Bonus Expense (adjustment)
| 60.00
|
|
| Accumulated Depreciation
|
| 450.00
|
| Bonus Reserve
|
| 180.00
|
Amortized
| Depreciation Expense
| 311.53
|
|
| Bonus Expense
| 124.62
|
|
| Accumulated Depreciation
|
| 311.53
|
| Bonus Reserve
|
| 124.62
|
