How to split fixed asset

Question

Accepted Answer

To split fixed asset, determine the useful life and salvage value, then allocate the cost over time.

Determine the useful life of the asset
Determine the salvage value of the asset
Allocate the cost of the asset over its useful life
Use straight-line depreciation method or other appropriate methods
Example: A company buys a machine for $10,000 with a useful life of 5 years and a salvage value of $2,000. The annual depreciation expense would be $1,600 ($10,000 - $2,000 / 5 years).

Accepted Answer

Fixed Assets splitting process: * Go to Fixed assets > Fixed assets > Fixed assets. * Select New. * In the Fixed asset group field, enter or select a value. Note the fixed asset number to use in the split process later. * In the Name field, enter a value. * Then finally Close the page.

Accepted Answer

Fixed Assets splitting process: 
* Go to Fixed assets > Fixed assets > Fixed assets.
* Select New.
* In the Fixed asset group field, enter or select a value. Note the fixed asset number to use in the split process later.
* In the Name field, enter a value.
* Then finally Close the page.

Accepted Answer

To split fixed asset, determine the useful life and salvage value, then allocate the cost over time.

Determine the useful life of the asset

Determine the salvage value of the asset

Allocate the cost of the asset over its useful life

Use straight-line depreciation method or other appropriate methods

Example: A company buys a machine for $10,000 with a useful life of 5 years and a salvage value of $2,000. The annual depreciation expense would be $1,600 ($10,000 - $2,000 / 5 years).

How to split fixed asset

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