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Why fixed assets depreciate?
Fixed assets depreciate because through depreciation process cost of fixed asset charged to all those fiscal years in which that fixed asset is used.
What is ammortisation?
to depreciate the value of an asset by reducing its cost over a period
Why fixed asset are subject to depreciation?
fixed asset does not mean that the value of asset no decrease in future it,s for sure, that,s why we depreciate it annually.....
Which fixed asset their no charge depreciation?
Land is the only fixed asset which has no depreciation charge because land does not depreciate it's value.
Can you depreciate below the residual value using the declining-balance method?
No, you cannot depreciate an asset below its residual value using the declining-balance method. This method calculates depreciation based on a fixed percentage of the asset's book value each year, but it should stop once the book value reaches the residual value. Continuing to depreciate below this threshold would not accurately reflect the asset's true value.
What is surplus on revaluation of asset?
Surplus on revaluation of assets means that on the even of revaluation, more assets has appreciate in their value then depreciate.
Do you depreciate an asset in the year of sale?
Yes assets are depreciated in year of sale upto the sale time in fiscal year of sale. IF asset is sold at start of year then there is no depreciation for that fiscal year.
Can life insurance benefits be seized by the IRS for back taxes?
Almost any asset you have can be seized by the IRS on a claim or judgement.
Why plant assets needs to be depreciated?
Plant assets only have a limited usage and in order to calculate the life of an asset, you must depreciate the asset according to it's useful life minus salvage value.
In accounting do you depreciate the installation of a fixed asset?
In accounting the "installation" if you are referring to the cost of having something installed is an expense and is recorded as such, that is an operating expense and is recorded as such. Since it is an expense it is not an actual asset, so can not be depreciated.
Do you include warranty charges on the initial cost of a fixed asset?
Include the cost of extended maintenance/warranty contracts in the asset valuation if the contract is purchased at the same time (or soon thereafter) as the capital asset. Depreciate these contracts over the useful life of the asset not the the contract life. Do not capitalize payments for contracts not purchased at the same time as the capital asset.
Can the IRS take a personal injury settlement for back taxes owed?
Yes. The IRS can take any asset you have to satisfy a tax lien.
