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Depreciation

Divide an asset

Assets can be divided as follows:
  • Create a new asset with a specific dollar amount.
    If you begin with an asset that cost $32,141.32, the application can create an asset with a cost of $12,141.32, leaving $20,000 in the original asset. The application will also divide the prior depreciation and current depreciation. Those steps can be repeated, for example, to create a 3rd asset with a $5,000 tax cost basis, resulting in 3 assets with bases of $12,141.32, $15,000, and $5,000, and each with a proportional amount of prior depreciation and current depreciation.
  • Create a new asset with a specific percentage of the original asset's value.
    • If you create a new asset with 20 percent of the original cost, prior depreciation, and current depreciation, the original asset will be changed to contain 80 percent of the original cost, prior depreciation, and current depreciation.
    • If you begin with an asset that consisted of 3 desks, the application can create an asset for one of the desks and leave the other 2 desks in the original asset. The application will also divide the prior depreciation and current depreciation.
  • Create any number of net assets with equal portions of the original asset.
    An asset that represents the purchase of 10 cattle can be divided into 10 assets, each with one-tenth of the original cost, prior depreciation, and current depreciation.
To divide an asset, perform the following steps.
  1. Open the client and, if necessary, select an activity folder.
  2. Select the asset you want to divide.
  3. Select
    Edit
    , then
    Divide
    .
  4. In the
    Divide Asset
     dialog, specify whether you want to divide the asset based on cost basis, units, percentage, or multiple units.
  5. Do one of the following tasks.
    • If you select the
      Tax cost
       option, enter the amount of tax cost you want to remove from the asset in the
      Tax cost to remove
       field and enter a name for the new asset in the
      New asset description
       field. The amount that you enter will be removed from all treatments.
    • If you select the
      Percentage
       option, enter the amount you want to remove from the asset in the
      Portion to remove
       field and enter a name for the new asset in the
      New asset description
       field.
    • If you select the
      Units
       option, enter the total number of units in the existing asset in the
      Total units in existing asset
       field, enter the amount you want to remove from the asset in the
      Units to remove
       field, and enter a name for the new asset in the
      New asset description
       field.
    • If you select the
      Multiple units
       option, enter the number of equal units into which the current asset will be divided in the
      Divide and adjust current asset into this number of equal units
       field.
  6. Select the
    Divide
     button.
  7. If you chose to divide by tax cost, percentage, or units, do one of the following tasks in the
    Confirm New Asset Number
     dialog.
    • Select
      OK
       to confirm the number that was automatically assigned to the new asset.
    • Enter a different number of your choosing, then select
      OK
      .
    note
    The application creates new assets based on the information you entered and changes the original asset as required by the division.

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