Asset Sale

In May we capitalized an asset. In June we decided to sell to a customer instead.   I disposed at a gain on sale of the asset. However the disposal report is not showing the current accumulated depreciation we ran for May and June. Why?

  • Hi, Jcampanella,

    One of your assets was placed in service in May and then disposed of in the following month, right?

    The Current Accumulated Depreciation is indeed displayed in the Disposal report.  Look at this screenshot, just to the right of center.

    The program calculates depreciation to the disposal date.  But I wonder if you misstated your question.  Maybe, you meant to ask something else.  Perhaps, there is another piece of data you are looking for?

  • thanks but mine does not reflect any depreciation. I originally just assumed it is because we decided to sell so soon and didn't hold on to the asset long enough?

  • What you have there is a total line from a report which is a result and cannot tell me why it is that way. To actually answer why to any calculation question, we the Asset's details.

    ~Delray

  • Let me elaborate on Delray's answer.

    Let's say you used the SL depreciation method.  Furthermore, let's say you placed the asset into service in the latter half of the month of May.  Because of the averaging convention used with the SL method, you will get no depreciation for the month of May.

    And further, let's suppose that you disposed of the asset in the first half of June.  Again, because of the averaging convention used with the SL method, no depreciation will be calculated for the month of June.

    Of course, we don't know these particulars without looking at the Detail View of the asset record which is the point that Delray was making.

  • O' Bob, so many jokes, so little time. Although, my typos cutting out proper grammar does seem to be happening at a rather alarming rate anymore.

    Given the details of an asset and the question of its behavior, at a glance, I can give a single answer. Without the details of an asset, I can think of at least 5 reasons for the result shown about. It breaks down to: Do you want a book or a sentence, which would you prefer?

    ~Delray